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Hyundai’s Net Income Drops 16%
Hyundai Motor Co. blames declining sales in China and the U.S. for a 16% drop in its third-quarter net profit to 939 billion won ($831 million).
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Hyundai Motor Co. blames declining sales in China and the U.S. for a 16% drop in its third-quarter net profit to 939 billion won ($831 million).
Also contributing to the decline was a quarterly loss by the company’s Kia Motors unit, which resulted from a court ruling ordering the affiliate to treat routine bonuses as part of base wages.
Hyundai brand sales slipped 1% to 1.07 million units in July-September. But revenue for the period climbed 10% to 24.2 trillion won ($21.4 billion), and operating profit gained 13% to 1.2 trillion won ($1.1 billion). The company’s performance in the third quarter of 2016 was hurt by labor strikes in South Korea.
Through the first nine months of 2017, Hyundai’s revenue advanced 4% to 71.9 trillion won ($63.6 billion). But unit sales declined 6% to 3.27 million vehicles, and operating profit dropped 9% to 3.8 trillion won ($3.4 billion).
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