Seoul (AFP) – South Korea’s largest automaker Hyundai Motor Thursday said its second-quarter net profits tumbled 11 percent as a strong won and slowing demand in key markets took a toll on the company.
Net profit for the April to June period fell to 810.7 billion won ($724 million) from 913.6 billion won a year earlier, the company said in a statement.
“Unfavourable currency conditions and reduced factory production aimed at stabilising inventory in key markets like the US … led to decreased profitability,” it said.
Operating profits also fell 29 percent to 950.8 billion won from 1.3 trillion won in the same period last year while sales rose 1.7 percent to 24.7 trillion won.
The auto giant said external uncertainties would continue to weigh on the company for the remainder of the year but added it would be rolling out new models that better cater to consumer demands.
“It’s difficult to make market predictions in the face of growing concerns over a global trade war,” a company official said. “We will try to boost sales centring on SUVs which are preferred by consumers, including the latest Santa Fe.”
Net profit of Hyundai Motor in the first half of 2018 plunged 34 percent to 1.5 trillion won from the same period last year while operating profit fell 37 percent to 1.6 trillion won in the January to June period.
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