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 | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. |