Hyundai profit de­cline shock

The Star Early Edition - - INTERNATIONAL -

HYUNDAI Mo­tors said yes­ter­day that its quar­terly profit was halved to its low­est level since 2010 as its car sales in China and the US plunged. Net in­come for the April-June pe­riod was 816.9 bil­lion won (R9.5bn), down 51 per­cent from 1.7 tril­lion won a year ear­lier, Hyundai Mo­tors said. The re­sult was worse than ex­pected. An­a­lysts had pre­dicted a net profit of 1.4trln won, ac­cord­ing to Fac­tSet, a fi­nan­cial data provider. It was also the small­est profit for Hyundai Mo­tors since it be­gan re­port­ing quar­terly re­sults un­der new stan­dards in 2010. Op­er­at­ing profit sank 24 per­cent to 1.3trln won dur­ing the pe­riod, while sales fell 2 per­cent to 24.3trln won. Hyundai Mo­tors’ erod­ing profit over the past three years has been at­trib­uted to its fail­ure to re­spond to a shift in con­sumer pref­er­ence to­ward sports util­ity ve­hi­cles.

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