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Hyundai Motor Co. of South Korea earned a record quarterly profit and sales for the three months ended June 30, exceeding expectations.
South Korea’s Hyundai Motor Co. achieved record-high quarterly profit and revenue for the three months ended June, surpassing forecasts. The automaker reported a net profit of 4 trillion won ($2.89 billion) for the April-June period, up from 3.2 trillion won in the same quarter the previous year.
This result exceeded the average profit forecast of 3.4 trillion won from 21 analysts compiled by LSEG SmartEstimate, focusing on consistently accurate analysts. The net profit marked Hyundai’s highest quarterly performance since the previous record in Q2 2022.
Despite the strong financial results, Hyundai Motor expressed concerns about an uncertain outlook due to intensifying price competition.
The company cited weakening consumer demand for automobiles, compounded by inflation and high interest rates, as factors that may lead to increased competition and incentives. This challenging environment could impact the business outlook in the coming quarters.
Hyundai Motor and its affiliate Kia Corp are the world’s third-largest automaker by sales. The company’s success in the second quarter was bolstered by strong sales of high-margin sport utility vehicles (SUVs) and hybrid vehicles, particularly in the United States. This strategy helped Hyundai offset a prolonged sales weakness in its domestic market of South Korea.
In the U.S., Hyundai’s vehicle sales increased by 2.2% in the second quarter, with SUVs accounting for about 80% of total sales. Hybrid vehicle sales also rose significantly, 42%, compared to the same period a year ago.
This performance contrasts with challenges faced by some rivals, including Tesla and other traditional automakers like Ford, as well as Japanese competitor Nissan Motor, which experienced a substantial drop in profit due to deep discounting in the U.S. market.
Analysts noted that a favorable exchange rate contributed to Hyundai’s profit growth in the second quarter. South Korea’s won depreciated by 4.3% against the U.S. dollar during the quarter compared to a year earlier, enhancing Hyundai’s repatriated overseas sales and profit.
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