Hyundai Motor Company, a South Korean car manufacturer known for its sedans, revealed plunging global sales due to higher demand of sports utility vehicles (SUVs) especially in China.
First quarter profits dropped by 12 percent year-on-year or 22.3 percent from the previous quarter. Its net income was 1.7 trillion won ($1.5 billion), down from last year’s 1.91 trillion won ($1.7 billion), still beating analysts’ forecast of 1.53 trillion won ($1.3 billion).
Operating profit contracted by 16 percent at 1.34 trillion won ($1.2 billion).
The company saw its sales tumble the most in China, Brazil, and Russia. Sales in China, the world’s largest car market, declined by 9.6 percent. Hyundai plans to cut production costs at its plants in China and boost output of SUVs.
Sales in Russia and Brazil also plummeted by 20 percent each. Its home country remains the most profitable with a 3.7 percent increase in sales. India and US also posted gains of 12 percent and 0.8 percent, respectively.
Revenue climbed by 7 percent to 22.35 trillion won ($1.9 trillion).
The material has been provided by InstaForex Company – www.instaforex.com
Hyundai Motor Company, a South Korean car manufacturer known for its sedans, revealed plunging global sales due to higher demand of sports utility vehicles (SUVs) especially in China.
First quarter profits dropped by 12 percent year-on-year or 22.3 percent from the previous quarter. Its net income was 1.7 trillion won ($1.5 billion), down from last year’s 1.91 trillion won ($1.7 billion), still beating analysts’ forecast of 1.53 trillion won ($1.3 billion).
Operating profit contracted by 16 percent at 1.34 trillion won ($1.2 billion).
The company saw its sales tumble the most in China, Brazil, and Russia. Sales in China, the world’s largest car market, declined by 9.6 percent. Hyundai plans to cut production costs at its plants in China and boost output of SUVs.
Sales in Russia and Brazil also plummeted by 20 percent each. Its home country remains the most profitable with a 3.7 percent increase in sales. India and US also posted gains of 12 percent and 0.8 percent, respectively.
Revenue climbed by 7 percent to 22.35 trillion won ($1.9 trillion).
The material has been provided by InstaForex Company – www.instaforex.com