Hyundai declared that its operating profit increased 24.9% in the first quarter helped by overseas sales that offset underperformance in the domestic market.
Operating profit reached $2 billion (2.28 trillion won) in the first three months, up 24.9% from 2011. Sales were up 10.6% on-year to 20.16 trillion won in the first three months and net income increased 2.45 trillion won, up 30.6% over the same period.
“Since the beginning of this year, Hyundai has posted strong sales growth in all major regions, except the domestic market. The company managed to gain market shares in the U.S. despite concerns over limited capacity, and it is outperforming in Europe. Robust sales momentum will continue in the second quarter due to strong seasonality,” declared Michael Yun, an analyst at Daewoo Securities in Seoul.
Global sales in the first quarter were up 16.7% on-year to 1,072,679 vehicles, compared to 1,039,000 units in the second quarter of 2011 when the company recorded its best quarterly operating profit. Domestic car sales were down 7.1% to 154,800 units, while exports of locally-made cars and sales of products manufactured in overseas plants increased to 328,771 units and 589,108 units, up 22% from the same period of last year.