Hyundai Motor’s Q2 net profit jumps 15%, slightly misses expectations

SOUTH Korea’s Hyundai Motor reported on Wednesday (Jul 26) a 15 per cent rise in second-quarter profit helped by solid sales of high-margin sport utility vehicles and increased output following an easing in global semiconductor shortages.

Hyundai Motor reported a net profit of 3.2 trillion won (S$3.34 billion) for the April-June period, versus a 2.8 trillion won profit a year earlier.

That compared with a 3.3 trillion won profit estimate from 19 analysts compiled by Refinitiv SmartEstimate, weighted towards analysts that are more consistently accurate.

Revenue rose 17 per cent on-year to 42 trillion won.

Tight global supply of auto chips that began during the Covid-19 pandemic has constrained vehicle production, buffering the auto industry from overall economic slowdown that has dampened demand for most consumer goods.

But economic uncertainty threatens to put pressure on their margin growth in coming quarters, as supply chain bottlenecks ease further, allowing production to rise just as high interest rates start cooling off vehicle demand.

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