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

The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 25, 2017
The 2018 Jaguar E-Pace is the leaping cat’s first venture into the compact SUV segment, and sure enough, it didn’t take long before an artist rendered a wilder version of...
by - July 25, 2017
Good news for Audi EU5 and EU6 diesel car owners in Europe. They can now update their cars to fit six-cylinder or eight-cylinder TDI engines through a retrofit program, and...
by - July 25, 2017
Recently, Autocar revealed that a Ferrari SUV is on the way, after the company continuously denied that they will not build one. And unlike the usual crossover styling, Ferrari will...
by - July 25, 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