Hyundai logs $1.86 billion net profit in the first quarter of 2014

Article by Christian A., on April 25, 2014

Hyundai Motor Co. posted KRW1.93 trillion ($1.86 billion) in net profit in the first quarter of 2014 – a figure similar to results in the same period in 2013. The carmaker’s results come as a surge in sales in China and South Korea helped offset lower demand for U.S. demand. The mean estimate of 13 analysts polled by Thomson Reuters places Hyundai’s first-quarter net profit at KRW2.19 trillion.

The carmaker saw its revenues surge only 1 percent to KRW21.65 trillion. Sales fell 3 percent in the US, where the company reshuffled its management and issued a product recall. Hyundai’s seemingly flat results were due to a stronger won that possibly rendered its Korean-made products more expensive overseas as well to new models paraded by its rivals.

The South Korean won traded close to a six-year high in April 2014, cutting the value of overseas earnings converted into the currency. Hyundai could hope for its refreshed Genesis and Sonata to help it compete better against rivals in the US, where it issued a recall in 2013 over a brake switch issue.

The recall has cost the company KRW90 billion ($86.74 million). Hyundai has been posting sales growth in China and has tasked its local head to hasten the construction of a fourth site in the country.

The carmaker’s additional capacity at its third Chinese site helped Hyundai post a 9-percent surge in sales in the first quarter. Hyundai logged a 5-percent rise in sales in its home turf South Korea as boosted by its luxury Genesis and a recovery in production following a labor row in 2013.

Hyundai could see its domestic sales increase in the second quarter following the launch of the revamped Sonata late March. The sedan, however, has to stave off challenges from foreign models like the Volkswagen Passat and the Toyota Camry, which are benefiting from free-trade agreements. [source: Hyundai]

Topics: hyundai, profit

If you liked the article, share on:

Comments

Recommended

Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Have you been wondering how much you have to produce to acquire a 2018 Mercedes-Benz S-Class Facelift? Wonder no more, as Mercedes-Benz has already divulged the pricing – at least...
by - May 26, 2017
Following the M3’s new facelift earlier this year, BMW is once again bringing something fresh to the table. In its newest offering, a cheaper version of the high performance sedan...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries