SOUTH KOREA: Hyundai Motor Q2 results hit by stronger won
Hyundai Motor has reported a 6.9% decline to net income in the second quarter, its bottom line dragged down by the stronger won.
For the first six months of 2014, sales revenue declined 0.3 percent to 44.40 trillion won (auto: 36.19 trillion / finance and others: 8.21 trillion) from a year earlier. Operating profit and net profit also fell 5.8 percent and 5.1 percent to 4.03 trillion won and 4.38 trillion won (including non-controlling interest), respectively, due to the strong won against the US dollar, despite increased sales growth and improved product mix, the company said.
Hyundai Motor sold 2,495,837 units globally (Korea: 345,709 / overseas: 2,150,128) during the first half of this year, a 4.4% increase from a year earlier. In Korea, Hyundai Motor's sales went up 6.2% on stronger sales of the recently-launched all-new Genesis and Sonata, while its overseas sales also rose 4.1% from the same period a year ago.
In the second quarter alone, sales revenue decreased 1.9% to 22.75 trillion won (auto: 18.47 trillion / finance and others: 4.28 trillion) with global sales of 1,268,385 units. Likewise, both operating profit and net profit declined 13.3% and 6.9% to 2.09 trillion won and 2.35 trillion won, respectively, from a year earlier.
Hyundai said today the difficult business environment will extend into the second half.
"We expect business conditions to worsen in the coming quarters because of the continued upward trend of the Korean won amid a weaker-than-expected economic recovery in advanced nations," the company said in a statement.
The company said that for the remaining of the year, it will stay focused on increasing sales and securing profitability by cutting costs and responding efficiently to regional demands with its latest products.