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Hyundai’s Profits Sag Again
Hyundai Motor Co.’s second-quarter net profit plunged 51% to 817 billion won ($730 million), its worst quarterly result since early 2012.
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Hyundai Motor Co.’s second-quarter net profit plunged 51% to 817 billion won ($730 million), its worst quarterly result since early 2012.
The company’s revenue declined 2% to 24.3 trillion won ($21.7 billion). Operating profit shrank 24% to 1.3 trillion won ($1.2 billion).
Second-quarter results were dragged down by a 64% drop in sales in China, where demand has been hurt by government opposition to South Korea’s deployment of a U.S.-supplied antimissile radar system.
Analysts say the company’s slow response to the global market shift from sedans to SUV/crossover vehicles also has eroded sales volume. The company notes it will add a new small crossover, the Kona, to its lineup in Europe and the U.S. later this year.
Hyundai’s vehicle deliveries through the first half of 2017 fell 8% to 2.20 million units. Analysts says the slump has challenged the company’s hopes of selling a record 5.08 million vehicles this year.
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