Hyundai has reported a fifth consecutive fall in quarterly profit. First quarter net profit fell 10.2% to 307.4bn won (US$329m), down from 342.4bn won a year ago.
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Quarterly sales were down 2.6% to 6,684m won (US$7.16bn).
Analysts surveyed by Dow Jones had forecast that Hyundai would post a net proft above last year’s level at 392bn won.
According to the Associated Press one of the main reasons for the poor result is a series of partial strikes during January, which resulted in workers downing tools for 13 days in pursuit of higher pay. The dispute cost Hyundai 266.8bn won (US$286m), or 15,513 units of lost production. This is still less than last year when four walkouts cost the company 1,640bn won (US$1.76bn) in lost production.
The company was also hit by lower profitability in export markets such as China, where stiff competition has resulted in price reductions.
A 3.6% fall in the value of the US dollar compared to the won also hurt first quarter earnings. Almost 60% of Hyundai’s sales were exported in 2006.
Separately Hyundai reported that its sales rose 10% in April to to 225,178 vehicles, driven by strong demand in South Korea. Unit sales in the first four months of this year totaled 837,402 vehicles, up 1.5% on a year earlier.
