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Hyundai profits rise, but lower than expected

By Philip Smith

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.

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