Hyundai Motor is expected to post a 7% dip in quarterly profit on Thursday as a firm won currency dented the value of overseas sales, but its outlook is slightly better, according to Reuters.
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The news agency noted that Hyundai, currently embroiled in a domestic cash-for-favours scandal, sells two-thirds of its vehicles abroad and should gain from increasing sales of higher-end models such as its Sonata sedan this year.
For the full-year, Hyundai is seen increasing net profit by 6.5% to 2.46 trillion won, according to forecasts by 24 analysts compiled by Reuters Estimates.
“A better product mix will offset the impact of a surging won, at least partially,” Choi Dae-sik, analyst at CJ Investment Securities, was quoted as saying.
The won was 4.5% stronger against the dollar in January-March from a year ago and recently hit fresh eight and a half year highs against the US currency, the news agency noted.
January-March net profit is forecast at 473.1bn won ($499 million), according to seven analysts polled by Reuters, down 7.2% from 509.8bn won a year ago and 28% below the 656.8bn won it earned in the previous quarter.
Sales are forecast at 6.72 trillion won, 8.9% higher than a year ago, but down 17.2% from the previous quarter, the report added.
