Hyundai Motor’s Q3 profit tum­bles African eco­nomic growth slows

China Daily (USA) - - BUSINESS -

HyundaiMo­tor, South Korea’s big­gest au­tomaker, saw­its third-quar­ter op­er­at­ing profit post a dou­ble-digit de­cline as global eco­nomic slow­down and sag­ging do­mes­tic de­mand re­duced car sales at home and abroad. Op­er­at­ing profit was 1.07 tril­lion won ($940 mil­lion) in the three months end­ing Sept 30, down 29 per­cent from the same pe­riod last year, the com­pany said in a reg­u­la­tory fil­ing. Rev­enue de­clined 5.7 per­cent from a year ear­lier to 22.08 tril­lion won in the July-Septem­ber pe­riod, and net in­come slumped 7.2 per­cent to 1.12 tril­lion won. Eco­nomic growth in Africa is set to drop to a 23 year low of 1.4 per­cent in 2016 due to the drop in oil prices, drought in south­ern Africa and the po­lit­i­cal cri­sis in eastern Africa, the In­ter­na­tion­alMone­tary Fund fore­cast on Tues­day. Abebe Se­lassie, IMF Di­rec­tor of the African Depart­ment, said the record dip in eco­nomic growth in Africa would be short-lived and it re­sulted from a ma­jor drop in com­mod­ity prices, in­clud­ing heavy me­tals and oil, af­fect­ing key African coun­tries. “There are four rea­sons for this slow­down: the drought, low com­mod­ity prices, tighter fi­nanc­ing con­di­tions and the de­layed pol­icy re­sponse in the re­gion,” Se­lassie said.

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