Hyundai Motor Co.’s profit rose by 38% in the third quarter as sales of new models increased in overseas markets, offsetting the negative impact from a stronger won.
In the three months ended Sept. 30, net income increased to 1.35 trillion won ($1.2 billion) from 979.15 billion won a year earlier. Bloomberg had surveyed analysts and compiled 16 estimates that average a 1.23 trillion won profit.
Based on the demand for its revamped Sonata sedans and Tucson sport-utility vehicles, Hyundai could have record car sales this year.
Hyundai had benefited from a steep increase in the yen that weighed down Japanese rivals Toyota Motor Corp. and Honda Motor Co. in markets where they compete. This aided in offsetting an increase in the won that cuts Hyundai’s earnings from overseas.
Before the earnings were announced, Kim Do Joon, who helps manage $8.9 billion worth of assets at Hanwha Investment Trust Management Co. in Seoul, had come out to say that the strengthening won against the dollar is “negative.”
But as the yen’s appreciation is steeper, it’s expected that Hyundai will be able to maintain its competitive edge over Japanese rivals “for a while.”