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Hyundai’s Operating Profit Plunges
Hyundai Motor Co. says slumping sales in China and the U.S. caused its operating profit in the first quarter to plummet 46% to $633 million.
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Hyundai Motor Co. reports that slumping sales in China and the U.S. caused its operating profit in the first quarter to plummet 46% to 681 billion won ($633 million).
Revenue in January-March declined 4% to 22.4 trillion won ($21 billion).
Hyundai says it will cancel 560 billion won ($521 million) in existing treasury shares by July 27 and buy back and cancel an additional 400 billion won ($372 million) in stock. The moves come amid heavy pressure from activist shareholder Elliott Management Corp. to bolster returns.
The company’s vehicle deliveries in China fell 15% to 175,000 vehicles, as buyers there continued to shun South Korean brands because of their homeland’s deployment of a U.S. missile defense system. One cause for hope: The company’s sales in China last month grew year on year for the first time in 13 months.
Hyundai’s volume in the U.S. dropped 12% to 149,000 units. As in China, the company is struggling with a sedan-heavy product lineup in a market that has shifted its preferences from cars to SUV/crossover vehicles.
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