Thomson ReutersAn employee sits in front of the logo of Hyundai Motor Co.at its dealership in SeoulSEOUL (Reuters) – South Korea’s Hyundai Motor on Tuesday said profit fell for the eighth consecutive quarter, as it boosted discounts to revive US sales and auto demand stagnated in emerging markets.
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In a regulatory filing, the automaker reported a net profit of 1.53 trillion won (US$1.3 billion) for the October-December period, down from 1.66 trillion won a year earlier.
That was slightly lower than expectations. The result was worse than market expectations for net profit of 1.60 trillion won.
Fourth-quarter operating profit dropped 19% to ₩1.52 trillion, Hyundai said, while revenue rose 5% to ₩24.76 trillion.
Revenues increased 5.1 percent to 24.765 trillion won from last year’s 23.574 trillion won.
Overseas plant sales saw a drop in profitability, especially in Russian Federation and Brazil, amid sharp fall in emerging market currencies dragging down profits repatriated into home. In the fourth quarter, the ratio came down to 6.1 percent from 8 percent in the same time of 2014. Automotive revenues increased 5.6 percent and finance revenues grew 6.1 percent.
For the business upturn, the company officials said that the automaker will focus on enhancing its future competitiveness and consolidate the sustainable growth base this year. Hyundai and its affiliate Kia Motors Corp. plan to expand their lineup of eco-friendly cars to meet the more stringent emission standards in markets including China.
SEOUL, South Korea (AP) – Hyundai Motor Co. reported its lowest annual profit in five years after a failure to fully anticipate strong demand for sports utility vehicles in China led to a sales drop in the world’s largest auto market.
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Despite the lower profitability, Hyundai made a decision to provide shareholders with 3,000 won per equity share as year-end dividend.
