Weaker currency and one-off costs hit Hyundai Motor profits in the first quarter despite a 6.0% year on year increase in sales.
Sales rose to KRW21.37 trillion thanks to strong sales outside Korea and the addition of a subsidiary, Hyundai KEFICO. However, operating profit and net profit fell 10.7% and 14.9% to KRW1.87 trillion and KRW2.88 trillion (including non-controlling interest), respectively, mainly because of increased costs due to a weaker currency and increased one-time provisions.
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Hyundai sold 1,171,804 units globally, a 9.2% increase. While sales in Korea fell 0.7%, overseas sales rose 10.9% to 1,018,076 units.
Production volume at Korean plants declined during the first quarter due to some production stoppages on weekends which increased fixed costs. Earnings are forecast to improve once issues over shift changes are resolved with workers.
Hyundai forecast that major auto markets, including some emerging markets, will keep posting slower growth amid fiercer competition and uncertain business environments.
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