Hyundai Motor said Thursday that its operating profit declined 10.7 percent to 1.868 trillion won ($1.679 billion) in the first quarter despite increased car deliveries globally. Sales reached 21.36 trillion won, a 6 percent increase from a year ago.

The nation’s largest carmaker sold 1,171,804 vehicles globally between January and March, up 9.2 percent from the same period last year. In Korea alone, its sales decreased 0.7 percent to 153,728 vehicles.

The company said that currency effects, coupled with production cuts at Korean factories, reduced its operating profit in the first three months.

The average won-dollar rate was 1,085 won per dollar in the first quarter, compared to last year’s 1,172 won. Also, the cheaper yen has become a boost to Japanese carmakers globally.

“The latest currency situation is still within the manageable level,” said Lee Won-hee, executive vice president and chief financial officer of Hyundai, during an earnings call on Thursday.

“Our key Japanese rivals such as Toyota and Honda now produce more cars in overseas markets like us. Their benefits also would be limited,” he said.

The Hyundai CFO also brushed off any serious impact from the carmaker’s latest large-scale recall in the United States, refusing to compare the situation with the 2008 Toyota fiasco.

“Unlike the Toyota case that caused real accidents, there have been no accidents reported for our case. The recall was a preemptive action for drivers’ safety,” he said.

Lee gave a positive outlook in the coming months, saying the company could achieve this year’s original sales goal of 4.66 million vehicles, a 5.7 percent increase from 2012.

The company said that the sales momentum in the U.S. market was shifting from pickup trucks and SUVs to sedans more recently, while its new factories in China and Brazil are expected to start full production this year.

By Lee Ji-yoon (jylee@heraldcorp.com)