IANS | 25 Apr, 2024
Hyundai Motor said on Thursday that its first-quarter net profit
slipped 1.3 per cent (year-on-year) amid a slowdown in sales due to a
temporary shutdown of one of its Korean manufacturing plants.
Net
profit for the January-March period came to 3.37 trillion won ($2.5
billion) on a consolidated basis, compared with a profit of 3.41
trillion won a year ago, the company said in a regulatory filing.
Operating
profit reached 3.55 trillion won, down 2.3 percent from a year ago.
Sales rose 7.6 per cent to a record 40.65 trillion won.
Hyundai
Motor said it sold 1,006,767 vehicles globally in the first quarter of
2024, down 1.5 per cent from the same period last year.
The
company's quarterly performance beat market expectations. The average
estimate of net profit by analysts stood at 3.03 trillion won, according
to a survey by Yonhap Infomax, the financial data firm of Yonhap News
Agency.
The company attributed the slowdown in sales to the
temporary shutdown of production lines at its Asan plant in South Korea,
carried out as part of Hyundai's upcoming new car launch preparations.
Sales
of Hyundai's eco-friendly vehicles fell 4.8 per cent to 153,519 units,
reflecting the recent slowdown of global electric vehicle (EV) demand.
"Despite
ongoing uncertainties in the business environment due to persisting
high-interest rates and geopolitical risks emanating from the Middle
East, as well as increased exchange rate volatility, Hyundai has
maintained a stable profitability of over 8 percent thanks to sustained
sales growth in major overseas markets," a company official said.
The
South Korean company said it plans to focus on enhancing sales of
eco-friendly cars through the expansion of its Ioniq EV lineup and that
of other hybrid models.