Hyundai profits rise, but lower than expected

Sales affected by engine defects and sluggish sales in China

Hyundai profits rise, but lower than expected                                 

Profits at Korean car maker Hyundai Motor have risen but failed to meet analyst expectations by a wide margin.

Third-quarter net profits rose more than 50 per cent to 427bn South Korean won ($370m, £280m). Analysts were expecting 684bn won (£450m, $580m).

The lower-than-expected results were due, say reports, to the need to address potential engine defects in the US and in its home market. The closure of a factory in Beijing also led to sluggish sales in China.

Total retail sales fell 3% in the third quarter from a year earlier.

The figures were helped, however, by a favourable South Korean currency and more sales of sport utility vehicles in the US.

Uncertainties remain about long-standing quality issues which emerged in 2016. There were claims that Hyundai and affiliate Kia Motors should have recalled more vehicles over engines catching fire.

Hyundai Motor Company, along with Kia Motors and Genesis Motor, comprise the Hyundai Motor Group, the third largest vehicle manufacturer in the world.

Chung Eui-sun, the Hyundai heir, is proposing to revamp the group structure to improve investor confidence.

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image