SEOUL: South Korea’s Hyundai Motor reported on Thursday a 17% fall in fourth-quarter operating profit, declining more than analysts estimated, as it spent more on promotions in a slowing car market.
Hyundai, which together with affiliate Kia is the world’s third-biggest automaker by sales, reported operating profit of 2.8 trillion won ($1.95 billion) for October-December, compared with 3.4 trillion won in the same period a year earlier.
The result was lower than a 3.2 trillion won average of 24 analyst estimates compiled by LSEG SmartEstimate, which is weighted towards estimates from analysts who are more consistently accurate.
Hyundai shares rose 1.4 % after the earnings result.
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During the quarter, Hyundai’s global retail sales slipped as solid sales in the United States and India were offset by sluggish demand in South Korea, Europe and China.
A weaker local currency against the US dollar helped raise Hyundai’s repatriated earnings but also increased foreign debt and related financial costs, weighing on profit, analysts said.
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