Hyundai Motor has forecast an operating profit of $US2.19 billion for 2004 and scaled back investment by about one-fifth from an earlier projection, according to the Reuters news agency, which noted that the profit estimate for 2003 has not been released.
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Hyundai, with a 48% share of South Korea’s $16.8 billion car market, reportedly said it aimed to sell 2.145 million vehicles this year worth $26 billion.
Domestic sales were expected to rise 13.4% to 710,000 units this year, while exports were seen rising 4.2% to 1.054 million units and sales from overseas plants jumping 57.6% to 381,000 units, Hyundai said in a statement cited by Reuters.
To help boost global output, the company reportedly said it planned to invest $2.1 billion in 2004, comprising some $1.6 billion at home and $609 million overseas.
Reuters said the new investment target was lower than its earlier projection of $2.6 billion announced on January 2 due to a cut in planned investment overseas – in 2003, Hyundai spent $1.9 billion on plants and research.
Hyundai also said the construction of a local truck plant jointly invested with DaimlerChrysler would be completed in April although it may take some time to set up a joint venture, the report added.
DaimlerChrysler, which owns 10% of Hyundai, is seeking to deepen its ties with the company by launching a 50-50 joint venture in South Korea to manufacture trucks, Reuters noted.
