The FINANCIAL — Hyundai Motor Company announced its business results for the third quarter of 2017 on October 26 in Seoul, reporting a 9.6 percent sales revenue increase from a year earlier to KRW 24.2 trillion.
Through the first nine months of 2017, sales revenue increased 4 percent from a year earlier to KRW 71.88 trillion from KRW 69.11 trillion. Sales volume in the nine-month period totalled 3.27 million units, declining 6 percent year on year as robust new model demands in Korea and other emerging markets helped limit impact from weak sales in China.
Excluding China, the company’s global sales volume in the January-September period rose 3.2 percent from a year earlier to 2.76 million units.
Operating profit totalled KRW 3.8 trillion, 8.9 percent lower than KRW 4.17 trillion posted in the first nine months of 2016 while net profit slid 29.9 percent to KRW 3.26 trillion compared to KRW 4.65 trillion.
For the July-September quarter, operating profit climbed 12.7 percent to KRW 1.2 trillion from KRW 1.07 trillion a year earlier when productions in Korea had suffered from labor strikes. Net income decreased 16.1 percent to KRW 939.2 billion compared to KRW 1.12 trillion. Sales volume dropped slightly to 1.07 million units from 1.08 million a year before.
Despite the difficult business environment, the company had managed to expand sales in Korea and other emerging markets helped by successful launches of new models including Grandeur sedan, Kona compact SUV and Genesis G70 sporty luxury sedan.
Intensifying competitions in major markets like the U.S., however, led to higher incentives and other operating expenses, weighing on the company’s overall profitability.
Hyundai Motor will continuously expand model line-up in new segments and increase SUV model supplies to best address customers’ demand. The company will also continue to expand investments into R&D to enhance fundamental competitiveness in global markets and to become a true leader in future mobility.
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