April 24, 2024

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[THE INVESTOR] Hyundai Motor said on July 26 its second-quarter net profit fell 11 percent as a strong won and increased fixed costs cut into its bottom line.

Net profit for the April-June period fell to 810.7 billion won (US$724 million) from 913.6 billion won a year earlier, Korea’s biggest carmaker by sales said in a statement.

“The won’s strength against the US dollar and reduced production at Hyundai’s US plant, which was designed to stabilize its vehicle inventory there, ate away the company’s second-quarter profitability,” the statement said.

Operating profit plunged 29 percent to 950.8 billion won in the second quarter from 1.345 trillion won a year ago. Sales were up 1.7 percent to 24.7 trillion won from 24.3 trillion won during the same period, it said.

In the January-June period, overall net profit slumped 34 percent to 1.54 trillion won from 2.32 trillion won in the year-ago period. Operating income declined 37 percent on-year to 1.63 trillion won in the first six months from 2.6 trillion won. Sales fell 1.1 percent to 47.25 trillion won from 47.67 trillion won.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)