Hyundai Motor has announced that first half sales volume and operating profit declined from the same period last year due to lower exports as well as weak currencies and economic recession in emerging markets.
However, higher sales of high-margin SUVs and Genesis models meant that first half sales revenue increased 7.5% to KRW 47.03 trillion.
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Operating profit fell 7.0 percent to KRW 3.10 trillion and net profit showed a 6.4 percent decrease to KRW 3.53 trillion.
Hyundai Motor Company's cumulative global sales for the first six months totalled 2,393,241 units (Korea: 350,006 / overseas: 2,043,235), a year-on-year decrease of 0.9%. Slowing growth in emerging markets and impact from currency fluctuations have been the main culprit for the global sales drop, Hyundai said.
In the second quarter alone, sales revenue posted KRW 24.68 trillion with global sales of 1,285,860 units and operating profit increased 0.6 percent to KRW 1.76 trillion, from a year earlier.
Hyundai Motor said that it forecasts an unfavourable business environment is likely to continue in the second half. In particular, the company said it anticipates further uncertainties in business conditions after the Brexit referendum which took place last month.
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By GlobalDataThe company said it will improve second half business results by boosting sales of SUVs, newly launched Ioniq and luxury brand Genesis models.
Hyundai Motor will "strengthen growth momentum with the luxury brand Genesis models, G90 and G80, and further develop state-of-the-art technologies within new models such as the Ioniq which is offered in three eco-friendly powertrain (Hybrid, Electric, Plug-in Hybrid)."
