SEOUL, April 23 — Hyundai Motor Co, South Korea's top automaker, today reported a better-than-expected 43 per cent fall in quarterly net profit as a weak currency helped cushion the blow of the global recession.
Hyundai, the world's No.5 car maker along with its affiliate Kia Motors Corp, posted a net profit of 225 billion won (RM600 million) in the first quarter, beating a 205 billion won forecast by 11 analysts in a Reuters poll.
That compared with a 392.7 billion won profit a year ago.
The maker of the Elantra compact car reported a 153.8 billion won operating profit, below a forecast for a 206.4 billion won profit. Its overall profit margin dropped to 2.5 per cent in the first quarter from 6.5 per cent in the year-ago quarter as the recession pressured automakers to step up marketing and reduce prices.
Hyundai and Kia are expected to benefit in the months ahead from continued weakness in the local currency and South Korea's steps to boost domestic car sales, but neither will be immune to the industry's worst-ever downturn.
Reflecting the company's resilient outlook, shares in Hyundai rose 40 per cent in January-March, beating the wider market's 13 per cent gain. — Reuters
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