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

After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 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