Hyundai profit sinks nearly 30%, hit by weak sales growthOctober 23, 2014 - 12:34 AMT PanARMENIAN.Net - Hyundai Motor Co. said Thursday, Oct 23, its profit sank nearly 30 percent for the July-September quarter, hurt by a stronger South Korean currency and weak sales growth in its home market, according to the Associated Press. South Korea's largest carmaker said its third quarter net income of 1.6 trillion won ($1.5 billion) was down 28 percent from 2.3 trillion won a year earlier. Sales rose 2 percent to 21.3 trillion won. Hyundai said it sold 3.62 million vehicles during the first nine months of the year, 4 percent higher from a year earlier. Despite higher sales, profit fell as the stronger won against the U.S. dollar and the Japanese yen reduced the value of its overseas sales when recalculated as won. Hyundai said the local currency's average value during the third quarter was highest since mid-2008. In addition, sudden volatility in foreign exchange rates at the end of September raised some expenses, it said. The company also underperformed foreign rivals in its home market even though an upgraded Sonata sedan went on sale. Its domestic sales inched up just 1.5 percent from a year earlier during the quarter. Growth in sales of imported cars was more than 10 percent. One bright spot was a sharp rise in sales of the Genesis luxury sedan in South Korea. Hyundai's overseas sales rose 5 percent, the AP says. Hyundai's share price has slumped since a Hyundai-led consortium last month decided to spend $10.1 billion for land in Seoul for new headquarters, sparking criticism that Chung Mong-koo, chairman of Hyundai Motor, was wielding outsized influence. The company's union staged a strike to protest the high-priced deal, hurting local production. Hyundai's share price closed 6 percent higher after the earnings release, the biggest jump since the announcement of the land purchase. Hyundai's chief financial officer told investors that the company will consider increasing its dividend next year. The company said it expects its profit to improve during the final quarter of this year as the South Korean won is expected to weaken. Following a recent wage agreement with the union, local manufacturing lines will operate at a higher rate and boost production, it said. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Turkey extends military presence in Azerbaijan The Turkish parliament has adopted a bill submitted by Recep Tayyip Erdogan to extend the mandate of Turkish troops. Russia to begin assessing migrant workers' speaking skills Rosobrnadzor is planning to change the Russian language exam for migrant workers and include an assessment of speaking skills Armenian, Saudi Foreign Minister meet in Riyadh The two commended the positive dynamics of the development of political dialogue between Armenia and Saudi Arabia Pashinyan: Azerbaijan’s proximity shouldn’t worry border residents At the same time, he said that he “does not guarantee [the security of villagers] one hundred percent”. |