Hyundai Motor reports 21% drop in Q2 operating profit, misses forecasts
- Hyundai Motor said revenue rose 2% from a year earlier to 49.2 trillion won
SEOUL: Hyundai Motor reported a 21% fall in second-quarter operating profit on Thursday, missing analysts’ estimates, as weaker vehicle sales, production disruptions and higher costs outweighed support from a weaker won.
Hyundai, which together with affiliate Kia Corp is the world’s third-biggest automaking group by sales, posted operating profit of 2.9 trillion won ($1.98 billion) for the April-June period, compared with 3.6 trillion won a year earlier.
That compared with a 3.2 trillion won forecast by LSEG Smart Estimate, which is weighted toward analysts who are more consistently accurate.
Hyundai Motor said revenue rose 2% from a year earlier to 49.2 trillion won.
Shares of Hyundai Motor were trading up 2% after the earnings announcement.
Hyundai forecasts macroeconomic uncertainty will persist and competition in the industry will be tougher.
Hyundai Motor India beats quarterly profit view on strong SUV demand
Its weak performance underscores wider challenges facing the auto industry, as carmakers contend with rising energy and raw material costs as well as supply chain disruptions linked to US tariffs and conflict in the Middle East.
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