Hyundai Motor, South Korea’s largest carmaker, reported its first profit increase in four quarters after sales rose in China and demand for hatchbacks helped boost deliveries in Brazil.
Hyundai shares fell 1.9 % to 253,500 won at the close in Seoul trading. The shares have gained 16 % this year, compared with the 2.5 % advance in the benchmark Kospi Index.
“I expect Hyundai to struggle a bit for the time being as the won is strengthening and they don’t have new volume models coming up until next year,” said Heo Pil Seok, chief executive officer at Midas International Asset Management Ltd., which oversees about $7.5 billion including Hyundai’s shares. “The Sonata sedan may help profits once it goes on sale next year.”
Third-quarter net income climbed 5.6 percent to 2.14 trillion won ($2 billion) from a year earlier, the Seoul-based company said today. That compares with the 2.15 trillion won average of 25 analysts’ estimates, compiled by Bloomberg.
Deliveries in China rose 15 % and sales from its Brazil factory reached a record a year after beginning production in the country. Hyundai is counting on the new Sonata, which shook up the U.S. midsize sedan market when it was last overhauled in 2009, to spur demand when it goes on sale next year.
The company is meeting growing demand in China by expanding its third plant, which will add 150,000 units a year in output from January next year, bringing the automaker’s total production in the country to 1.05 million units.
Hyundai is also considering building a fourth plant in China and plans to increase the number of dealerships to 1,000 by 2015 from about 800 this year, according to the company.
In Brazil, sales of the HB20 hatchback, designed specifically for the market, helped Hyundai to book record quarterly plant sales of 46,578 units in the three months ended September. The company will increase annual output by 20,000 units in the country from 2014, bringing the total production to 170,000 units, said Kim Yeung Tae, deputy chief financial officer.
) - Thursday, October 24th, 2013 - filed under Hyundai
, Sales Reports
. Image credit: .
Discuss: Hyundai reports first quarter profit this year