Market watchers forecast that Hyundai Motor
would report on-year decline in earnings for the July-September period due to a drop in sales, in both domestic and overseas markets.
According to Hyundai, South Korea’s largest automaker sold a combined 697,864 units in July and August, down 4.1 percent from a year earlier. Breaking down, 607,873 units were sold overseas, down 1.4 percent on-year, while 89,991 units were sold in South Korea, down 19 percent from a year earlier.
Hit by lackluster sales in July and August, local analysts estimate Hyundai Motor’s profit to slump in the third quarter.
“Hyundai Motor’s third-quarter operating profit is estimated to decrease 9.9 percent on-year to 1.35 trillion won (US$ 1.22 billion),” said Cho Soo-hong, analyst at NH Investment & Securities.
“Weak demand in emerging markets and the ongoing strike has affected production levels. The falling exchange rate, which increased sales cost, is also behind the poor performance.”
KTB Investment & Securities projected Hyundai Motor’s sales and operating profit to decrease on-year by 5.3 percent and 7.3 percent, respectively.
Samsung Securities predicted the automaker’s sales and operating profit will decrease on-year by 3.3 percent, 6.9 percent, respectively.
Union workers of Hyundai Motor on Sept. 26 staged an all-out strike for the first time in 12 years, disrupting auto production amounting to tens of millions of dollars.
By Ahn Sung-mi (email@example.com