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Hyundai’s Profits Sag
Hyundai Motor Co.'s net profit dropped 7% to 2.35 trillion won ($2.3 billion) in April-June compared with results in the same period last year.
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Hyundai Motor Co.'s net profit dropped 7% to 2.35 trillion won ($2.3 billion) in April-June compared with results in the same period last year.
Hyundai blames the strong won for hurting operating profits for the company, which sells 86% of its products overseas.
Global unit sales rose about 6% to 1.27 million units in April-June, but revenue declined 2% to 22.8 trillion won ($22.1 billion). The company's operating profit for the period shrank 13% to 2.1 trillion won ($2.0 billion).
Hyundai's sales in the U.S. expanded only 1% to 364,400 units in the first half of 2014 one-fourth the market's growth, according to Autodata Corp. Hyundai's first-half sales in China rose 10% compared with 11% for the market overall.
The company cautions that an "unfavorable" business environment will continue in the second halve of the year, leaving uncertainties about the global auto industry.
Hyundai vows to step up quality management efforts beginning at the product development stage in hopes of further enhancing its third-part crash test and quality ratings.
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