April 18, 2024

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[THE INVESTOR] Korea’s leading auto parts maker Hyundai Mobis said on Oct. 26 its net profit fell 6.8 percent in the third quarter from a year earlier on the won‘s strength and recall-related costs.

Net profit for the three months ending on Sept. 30 fell t 449.65 billion won (US$394 million) from 482.24 billion won a year ago, the company said in a statement.

“The won’s strength against the dollar and other currencies, as well as provisions for airbag control unit-related recall costs, cut into the bottom line,” the statement said.

The dollar fell to 1,121.59 won in the third quarter from 1,132.24 a year earlier, according to the Bank of Korea. A strong won drives down the value of dollar-denominated income when converted into the local currency.

Hyundai Mobis supplies auto components to Hyundai Motor and Kia Motors and develops future vehicle technologies for the carmakers. They are all affiliates of Hyundai Motor Group. 

Operating profit declined 15 percent to 462.25 billion won in the third quarter from 544.43 billion won a year ago. Sales were down 3.9 percent to 8.427 trillion won from 8.773 trillion won during the same period, it said.

In the first three quarters of 2018, net profit fell 15 percent to 1.468 trillion won from 1.726 trillion won in the same period one year earlier. Operating income also dropped 15 percent to 1.443 trillion won from 1.706 trillion won during the cited period. Sales were down 3.1 percent to 25.05 trillion won from 26.32 trillion won.

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