Hyundai Motor reports 21% drop in Q2 operating profit, misses forecasts

[SEOUL] Hyundai Motor reported a 21 per cent fall in second quarter operating profit on Thursday (Jul 23), 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 (US$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 SmartEstimate, which is weighted towards analysts who are more consistently accurate.

Hyundai Motor said revenue rose 2 per cent from a year earlier to 49.2 trillion won.

Shares of Hyundai Motor were trading up 2 per cent after the earnings announcement.

Hyundai forecasts macroeconomic uncertainty will persist and competition in the industry will be tougher.

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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. REUTERS