Hyundai Motor posts Q3 profit on Brazil, China sales
Seoul: Hyundai Motor Co., South Korea`s largest automaker, posted its first increase in net profit for a year in the third quarter with strong sales in China and Brazil offsetting poor domestic performance.
Net profit was up 3.9 percent in the July-September period from a year earlier at 2.25 trillion won (USD 2.1 billion), the company said.
Hyundai`s first profit increase for four quarters was fuelled by a strong sales performance in two key emerging markets, Brazil and China.
Sales rose six percent on-year to 20.8 trillion won, and operating income gained 1.7 percent to 2.01 trillion won, it said.
Accumulated operating profit for the first nine months of 2013 was down 4.9 percent on-year to 6.3 trillion won.
"Sales went up from a year earlier, but the accumulated operating profit fell due to the slow domestic demand and production losses (caused by labour strikes)," a Hyundai Motor spokesman said.
Downside risks are growing, he said, citing the sluggish domestic demand, global economic uncertainties and fluctuating currency markets.
"But we will focus on improving profitability in the next quarter by upgrading competitiveness, brand images and rolling out new models," he added.
Hyundai Motor said earlier this month that its management and domestic union had agreed on an annual deal over wages and benefits, ending several weeks of strikes and work stoppages at its Korean plants since August that cost one trillion won in lost production.