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Hyundai’s Quarterly Profit Plunges 39%
Hyundai Motor Co., including its Kia Motors affiliate, says its net profit in the fourth quarter dropped 39% to 1.1 trillion won ($919 million) compared with the same period last year.
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Hyundai Motor Co., including its Kia Motors affiliate, says its net profit in the fourth quarter dropped 39% to 1.1 trillion won ($919 million) compared with the same period last year. It was the 12th consecutive quarter of year-on-year shrinkage.
Sales revenue in October-December dipped 1% to 24.5 trillion won ($21 billion). Operating profit fell 33% to 1.5 trillion won ($1.3 billion).
Results were dragged down by strikes in South Korea and sagging demand in China and Russia. Hefty retail incentives in the U.S. also have drained profits. The spending has propped up volume but hurt profits in the U.S., its second-largest market after China.
The company has been struggling to realign its sedan-heavy lineup in a global market that is flocking to SUV/crossovers. Earlier this month Chairman Chung Mong-koo predicted that combined Hyundai-Kia sales in 2017 would grow by only a few percentage points to 8.25 million units.
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