Hyundai Motor Q3 profit falls 47%
Hyundai Motor Co on Monday blamed a strong won and production losses from a strike for a 47 per cent drop in net profit in the third quarter.
By Agencies |
SEOUL: Hyundai Motor Co on Monday blamed a strong won and production losses from a strike for a 47 per cent drop in net profit in the third quarter.
Kia Motors Corp, a Hyundai affiliate, meanwhile, announced it swung to a net loss in the third quarter for the same reasons. It was the company's first loss since the fourth quarter of 1998.
Hyundai, which together with Kia forms the world's sixth-biggest automaker, said net profit for the quarter ended Sept. 30 was 282.8 billion won ($299 million), down from 535 billion won a year earlier and worse than the average forecast of 420 billion won by 12 analysts polled by Dow Jones Newswires.
Sales fell 4.2 per cent to 5.89 trillion won.
Hyundai's strike, which began in late June and ran through most of July, caused production losses of 93,882 vehicles and pulled Hyundai's domestic market share down to a record low of 30 per cent in July.
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The number of vehicles sold fell to 339,21 in the third quarter, down from 360,856 the year before.The walkout was the second costliest ever at the company, where the union has gone on strike every year but one since being formed in 1987.
In the July-September period, the US dollar traded at 945.20 on average against the Korean won, down 8.9 per cent from 1,038 won in the same period last year.
A stronger won can make South Korean products more expensive abroad and lower the value of earnings in overseas markets when those are converted into the South Korean currency.
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