Hyundai profit decline shock
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.