Hyundai gained 34% less in the first half due to its decline in ChinaAutomotive News
South Korea’s biggest auto maker Hyundai Motor saw its net profit fall in the first half of the year by 34 percent year-on-year after the second-quarter profit fell 48 percent on the sharp decline in sales in China.
In the first half of the year, the Seoul-based company posted a net profit of 2.32 trillion won, down 34 percent year-on-year, according to a statement released today.
Its operating profit fell 16 percent to 2.6 trillion won, although its turnover rose 1.4 percent to 47.67 trillion won.
By volume of units, it traded in the first six months of 2017 about 2,198,000, down 8.2% year-on-year, mainly due to the drop in sales in China (its second largest market) during the second quarter.
As a result, between April and June its net profit stood at 913.6 billion won (about 700 million euros), down 48 percent.
In that period, the company achieved EBITDA of 1.16 trillion won (888 million euros), 51.1 percent less than the previous year, and an operating profit of 1.34 trillion euros Wones (1,026 million euros), down 23.7 percent year-on-year.
Its sales revenue in April-June fell 1.5 percent to 24.3 trillion won (18.614 billion euros).
By volume of units sold, Hyundai in the second quarter marketed 64.2 percent less in China as a result of the covert boycott promoted by the Chinese government since the spring, after the installation on South Korean soil of a US anti-missile shield that opposes Beijing.
In India and the United States, its other two major markets, sales by number of units fell in April-June by 3.6 and 8.1 percent in the face of the apparent lack of new launches.
Instead, some 43,000 of their models were sold in Brazil, up 6 percent.
In total, the company sold between April and June around the world approximately 1,108,000 cars, down 13.8 percent from the same quarter of 2016.
The company’s vice president, Koo Za-yong, explained today in a conference call that Hyundai expects to improve its catalog by 2020 by reducing the number of sedan models and increasing the number of SUVs in the A and E segments to face the current bout.
The company also faces in South Korea, its largest market, a strike threat posed by the majority union if the current wage negotiations fail.
EFE – Seoul – 07/26/2017 (Translation Soft)