Hyundai records biggest profit gain in seven years

Image: Reuters
Image: Reuters

South Korea's largest automaker Hyundai Motor saw net profit pick up by almost a quarter in April-June thanks to its sport utility vehicles (SUV) and weak won.

Net profit during the period rose 23.3% on-year to 999-billion won, the firm said in a statement, sustaining its earning streak from the first three months of the year.

The January-March reading marked a recovery for Hyundai after it posted its first quarterly loss in eight years. 

The latest increase was "driven by improved product mix with new SUV models" and came despite "the sluggish global economic growth" fuelled by the China-US trade row, the company said.  

The "currency impact" of the weaker South Korean won also contributed to the improved bottom line, it added. 

"The company will further streamline production, sales and other capabilities in its regional headquarters to better tailor products and services," it said, adding it will roll out the first SUV lineup of its Genesis brand later in the year to continue its "SUV-centred sales".

The company's operating profit jumped 30% on-year to 1.24-trillion won, while revenues rose 9.1%.

Shares in the firm closed down 1.1%.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Lockdown For
Voting Booth
What's more important when you're deciding to purchase a vehicle?
Please select an option Oops! Something went wrong, please try again later.
29% - 176 votes
Safety features
8% - 51 votes
39% - 234 votes
Good fuel consumption
12% - 73 votes
6% - 35 votes
Power figures
6% - 38 votes