Hyundai posts increase in 3rd quarter net profit to KRW2.14 trillion

Article by Anita Panait, on October 28, 2013

Hyundai Motor Co. posted a 5.6-percent hike in net profit in the third quarter of 2013 to KRW2.14 trillion ($2 billion), thanks to a surge in sales in China and Brazil.  The carmaker logged a 15-percent hike in deliveries in China while sales from its Brazil site achieved a record a year after commencing production in the country.

Hyundai is counting on the new Sonata to bring in more sales when it becomes available in 2014. Heo Pil Seok, chief executive of Midas International Asset Management Ltd., told Bloomberg by phone that he expects Hyundai “to struggle a bit for the time being” as the Korean won is strengthening and the carmaker has no new volume models coming up until 2014. He remarked that the Sonata sedan may help Hyundai’s profits when it goes on sale next year.

Hyundai shares have gained 16 percent this year, compared with the 2.5 percent advance in the benchmark Kospi Index. The South Korean carmaker will try to meet growing demand in China by expanding its third site, adding 150,000 units annually from January 2014. This brings Hyundai’s total output in China to 1.05 million units.

Hyundai is also mulling building a fourth site in China and is planning to hike the number of dealerships to 1,000 by 2015 from around 800 this year. According to Kim Yeung Tae, Hyundai’s deputy chief financial officer, the carmaker’s total output for 2013 will likely top 4.7 million units, exceeding Hyundai’s forecast by around 1.3 percent. [source: Hyundai]

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