Hyundai Motor Company has been hit by weaker global demand and the effect of strikes on production, leading to a 38% fall in third quarter net profits.
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South Korea’s largest automaker said that net profit in the period was 264.7 billion won (US$186m). Operating profit reached 104.5 billion won down from 356.2 billion a year earlier. Sales, meanwhile, fell 15% to 6.05 trillion won in the period.
Hyundai suffered from a series of strikes that extended over two months, which the company blamed in part for the fall in profits.
However, Hyundai remained confident that sales would recover in the fourth quarter as operations returned to normal.
The company also expects to meet this year’s business targets.
“Demand for smaller cars is rising although global auto demand is shrinking. We have proper models and diversified markets, so we are confident of meeting this year’s target of 33 trillion won (in sales) and an operating margin of 6.5%,” Park Dong-wook, a director at Hyundai’s treasury division, said today.
