Hyundai Motor Co., South Korea’s largest automaker, said Thursday its net earnings for the second quarter dropped 6.9 percent to 2.35 trillion won ($2.29 billion), mainly due to unfavorable exchange rates.

Operating profit also plunged 13.3 percent to 2.08 trillion won in the same period, with sales falling 1.9 percent to 22.75 trillion won, the company said in a regulatory filing. Hyundai Motor said it sold 1.3 million cars in the three-month period.

The company said unfavorable exchange rates took a toll on overall profit, despite steady demand for new cars and companywide efforts to reduce production costs. The Korean won appreciated 5.1 percent against the U.S. dollar in the first half. (Yonhap)