April 19, 2024

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[THE INVESTOR] Hyundai Motor said on Oct. 26 its third-quarter net profit fell 16 percent, due mainly to sharp declines in China sales. 

In the July-September quarter, Hyundai Motor’s net profit fell to 939.2 billion won (US$835 million) from 1.12 trillion won a year earlier, the company said in a statement.

The number of vehicles sold in China plummeted 27 percent to 188,000 in the third quarter from 256,000 units a year earlier. The figures were hurt by local boycotts of Korean products amid political tensions between Seoul and Beijing over the deployment of the missile defense system THAAD in South Korea.

Weak sales in the United States also weighed on the quarterly results. Hyundai saw its units sold in the U.S. also fall 27 percent to 75,000 from 103,000 autos over the same period.

In a conference call held after the earnings release, Hyundai executives expressed expectations of tougher competition with rivals in major markets such as China and the US, due to increased inventory and marketing costs.  

“To revive sales, the company will gradually launch new models such as the Kona subcompact SUV and the Genesis G70 sedan in the US from later this year,” said Executive Vice President Choi Byung-chul, who is in charge of Hyundai’s financial and accounting division.

Operating profit rose 13 percent to 1.2 trillion won in the third quarter from 1.07 trillion won a year earlier. Sales were up 9.6 percent to 24.20 trillion won from 22.08 trillion won during the same period, the statement said.

By Alex Lee and newswires (alexlee @heraldcorp.com)