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Hyundai’s Earnings Drop 21%
Net profit for Hyundai Motor Co. in the first quarter shrank 21% to 1.4 trillion won ($1.2 billion), marking the 13th consecutive decline in the company’s year-on-year results.
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Net profit for Hyundai Motor Co. in the first quarter shrank 21% to 1.4 trillion won ($1.2 billion), marking the 13th consecutive decline in the company’s year-on-year results.
Operating profit in January-March declined 7% to 1.3 trillion won ($1.1 billion). Hyundai blames a hike in spending to develop advanced technologies in powertrains, vehicle connectivity and self-driving systems.
Revenue for the period advanced 5% to 23.4 trillion won ($21 billion). But Hyundai’s retail sales fell 14% to 1.09 million units worldwide. Results were hurt by anti-Korean sentiment in China and a product mix that still contains too many cars and not enough SUV/crossover models to match market demand.
Hyundai says its new Genesis luxury sub-brand, coupled with new SUVs, will help regain sales and fuel a “gradual recovery” in earnings.
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