Print Edition - 2017-04-27  |  Money Digest

Hyundai profits drop 21pc


Apr 27, 2017-

South Korea’s biggest automaker Hyundai Motor posted a 21 percent drop in first-quarter profits on Wednesday, hammered by the fallout from a diplomatic spat between Seoul and Beijing over a US missile defence system. In a statement, Hyundai said it posted 1.46 trillion won ($1.3 billion) in net profits during the January to March period, its 13th consecutive quarter of profit downturn. “Partial suspensions at factories increased cost burdens while bigger marketing fees were spent to overcome the global economic slowdown,” the company said. The firm said it recorded strong sales in emerging markets like Russia and Brazil but added that “weak demand” by Chinese consumers resulted in a drop in overseas sales. Sales in China plunged 44 percent last month. Worldwide, Hyundai sold fewer than 1.1 million cars in the first quarter, 1.6 percent fewer than the same period last year. The company forecast more challenges ahead in the face of slow global growth and spreading trade protectionism.

Published: 27-04-2017 10:24

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