Despite sluggish markets all across Europe and China, South Korean auto major Hyundai Motors has posted a 10% rise in quarterly net profits. Hyundai, the fifth largest auto company in the world along with Kia Motors has reported a ? 2.55 trillion net profit for the second quarter of 2012. This is up from ? 2.31 net profit in the same period a year ago and a ?2.45 in first quarter of current year. This is the company’s 13th straight quarter of rising profits notwithstanding current economic scenario across the auto sector.
Hyundai continues in its endeavor to offer stylish, affordable and high performance vehicles in US and European markets and it is this that has helped the company reach its targets along with assistance of a weaker won as against the dollar this year and the new South Korean free trade deal with Europe.
Despite a positive second quarter, the third quarter of 2012 has not opened on a positive note. Hyundai posted a smaller than expected 13% fall in quarterly operating profit both where cars and commercial trucks were concerned. This situation is not likely to improve in the near future either due to uncertainties in nearly all auto markets across the globe.
News release: Hyundai Motor Reports 2012 First Half Earnings
– Hyundai sells 2.18 million units worldwide in the first half of 2012
– Sales revenue and net profit stand at 42.1 trillion won and 5.0 trillion won
Hyundai Motor Company, South Korea’s largest automaker, sold 2,182,768 units (domestic: 327,963 / overseas: 1,854,805) worldwide in the first six months of 2012, up 11.5 percent comparing to the first half of last year.
Hyundai Motor’s robust sales in overseas markets, based on its world-class quality and strong product competitiveness, led strong earnings in spite of sluggish global demand: Net profit rose 19.5 percent to 4.998 trillion won (including non-controlling interest) in the first half from a year earlier. Hyundai Motor’s operating profit stood at 4.785 trillion won on sales revenues of 42.105 trillion won (Auto business: 36.323 trillion / Finance and others: 5.782 trillion). Sales revenues increased 9.9 percent due to a rise in sales volume and improved product mix.
While sales in the Korean domestic market decreased 4.6 percent to 327,963 units because of falling consumer confidence, overseas sales rose 14.9% to 1,854,805 units (export: 663,637 / overseas plants: 1,191,168) comparing to the first half of 2011.
Thanks to growing popularity outside Korea, Hyundai Motor maintained sales momentum for the first half of 2012, while enhanced brand values and rising average selling price helped improve profitability as well. Even in shrinking markets such as Europe, Hyundai bucked the trend with successful launches of local strategic models.
Hyundai Motor foresees that business uncertainty surrounding the auto industry will increase in the second half. To deal with difficulties such as the European financial crisis and slowing demands in emerging markets, Hyundai Motor will focus more on qualitative growth, raising profitability based on brand enhancement through introducing new models of high quality and improving customer services.
The company will also accelerate the development of its eco-friendly car line up, including electric vehicles, hybrid cars, fuel cell electric vehicles as well as conventional vehicles with high fuel efficiency and low emissions, establishing solid ground for growth.