“We believe that we would face more difficulties in the latter half of this year as uncertainties grow in the wake of Brexit and the global growth outlook is being cut”, it said.
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South Korea’s leading automaker Hyundai Motor Co. on Tuesday said its net income dropped slightly from a year earlier in the second quarter on a dip in exports and profitability.
While net income fell to 1.66 trillion won ($1.46 billion) in the three months through June, the result beat analysts’ estimates that profit would decline to 1.62 trillion won. But low oil prices have prompted consumers in the United States – the firm’s second-biggest market – to switch to gas-guzzling sport utility vehicles and pickup trucks, hitting Hyundai harder than peers because of its heavier reliance on sedan sales.
“The company’s overall performance has somewhat slowed from a year earlier in the first half, partly due to weak demand in some newly emerging markets”. Koo said sales incentives to coax buyers into showrooms jumped in the first half, without saying how much the promotions cost Hyundai.
Hyundai has struggled to expand its presence in the fast-growing Chinese auto market – the world’s largest – by pushing sales of popular sports utility vehicles there.
Hyundai warned its outlook for the second half had been made more uncertain by Britain’s June 23 vote to leave the European Union, clouding business prospects. General Motors posted a record second-quarter profit, boosted by strong USA sales of pickup trucks and SUVs, while Volkswagen said cost-cutting and rising European vehicle sales helped it to beat first-half profit forecasts.
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Operating Income rose 0.6% to 1.76 trillion won from 1.75 trillion won in the previous year. In total Hyundai sold 1,285,860 units during the cited period. Sales from its Brazil factory slipped 6 per cent in the second quarter, Hyundai said.
