Hyundai Motor Q1 net profit up

SEOUL: Hyundai Motor said Thursday its first-quarter net profit rose 28 percent on higher sales, cost reductions and weakness in South Korea's currency. Hyundai earned 392.65 billion won (US$395 million; euro249 million) in the three months ended March 31, compared with 307.39 billion won for the same period last year, the company said in a statement to South Korea's financial regulator. The result was far lower than the 564.17 billion won (US$567 million; euro357.58 million) average profit forecast of 10 analysts polled by Dow Jones Newswires.

Sales rose 22 percent to 8.2 trillion won (US$8.2 billion; euro5.2 billion), Hyundai said. ``First-quarter sales rose on an improved product mix, led by higher sales of mid- to large-size sedans,'' Hyundai said in a separate statement. ``Hyundai Motor has been able to establish an ideal sales structure that isn't largely affected by the economic situation of just one region,'' the company said.

The South Korean won skidded to two-year lows against the U.S. dollar during the first quarter. A weaker won helps Hyundai and other South Korean exporters by making their products cheaper overseas and increasing the value of earnings repatriated from abroad.

Overseas, Hyundai has plants in China, India, Turkey and the United States. It is building a factory in the Czech Republic and has plans for others in Russia and Brazil. Hyundai is South Korea's biggest automaker. Combined with affiliate Kia Motors Corp., it forms the world's sixth-largest automotive group.