April 23, 2024

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[THE INVESTOR] Many Hyundai Motor Group affiliates enjoyed an operating profit jump this year, while its bigger auto arms Hyundai Motor and Kia Motors suffered a sales decline.

The auto conglomerate’s 18 affiliates posted combined sales of 114 trillion won (US$97.57 billion) from January to September, down 2.5 percent from the same period last year, according to industry tracker CEO Score on Dec. 1. 

Their operating profit came to 8.11 trillion won, down 11.7 percent on-year, weighed down by sluggish performance of the group’s two automakers Hyundai Motor and Kia Motors. 

During the cited period, Hyundai Motor’s sales dropped 7.6 percent on-year to 29.68 trillion won, while operating profit plummeted 31.6 percent to 2.15 trillion won.

For Kia Motors, sales dropped 3.1 percent to 228.6 billion won, while operating profit declined 8.3 percent to 129.5 billion won.

Hyundai Wia, Hyundai Steel, Hyundai Engineering & Steel Industries and HMC Investment Securities were also hit by declining profit during the period.

Meanwhile, 12 affiliates, including Hyundai Glovis, Hyundai Mobis and Hyundai Engineering, saw their profit increase compared to a year ago.

Hyundai Mobis, despite the sales slump of its major clients Hyundai Motor and Kia Motors, reported solid business performance, thanks to increased overseas sales and demand for high-end auto parts. South Korea’s largest auto parts maker posted 3.5 percent rise in sales to 48.4 billion won, and 6.3 percent rise in operating profit to 80.2 billion won.

Hyundai Rothem, the train-making affiliate, recorded 564.2 percent rise in its operating profit -- the highest among affiliates -- to stand at 63.3 billion won. 

By Ahn Sung-mi (sahn@heraldcorp.com)