ZCZC
BCN-35
SKOREA-HYUNDAI-AUTO-COMPANY-EARNINGS
Hyundai Q3 profit plummets on slowing sales, currency swings
SEOUL, Oct 25, 2018 (BSS/AFP) – Hyundai Motor reported a 67 percent plunge
in third-quarter net profit from the previous year after overseas sales
slowed and currency swings hurt its bottom line in emerging markets.
Net profit for July to September was 306 billion won ($268.8 million),
while operating profit plummeted 76 percent year-on-year to 288.9 billion
won, the firm said in a statement.
“The third quarter was a difficult time due to slowing demand in major
markets including the US and concerns over a global trade dispute,” said
Hyundai, which together with its subsidiary Kia is the world’s fifth-largest
automaker.
Weakening of the Brazilian and Russian currencies and slowing sales in
China also took a toll on Hyundai’s bottom line, it said, noting that the
Brazilian real lost more than 20 percent against the won in the last 12
months.
The company sold 1.12 million cars worldwide in the third quarter, down
0.5 percent from the same period last year.
It has struggled to stay afloat in China — the world’s largest car market
— as it is increasingly sandwiched between high-end cars from Japan and
Germany and cheaper vehicles from homegrown carmakers.
Sales were further hurt by the company’s late foray into the Chinese
market for sports utility vehicles (SUVs), which have risen in popularity
among Chinese consumers.
Hyundai’s share price plunged six percent on Thursday to close at 110,000
won on the Seoul stock market.
BSS/AFP/HR/1358