Hyundai Motor’s Q1 net profit rises 92% on SUV and production increases

Seoul, April 25th: South Korea’s Hyundai Motor said on Tuesday its first-quarter net profit was up 92% from the same period last year due to increased production and an improved product mix. Net profit for the three months ended March increased to 3.42 trillion won ($2.56 billion) from 1.78 trillion won in the same period last year, the company said in a statement. Hyundai EXTER SUV design officially announced before its debut. That’s all we know so far.

Net profit was supported by improved chip supply, strong sales of high-margin SUVs and increased vehicle production amid a weaker won against the US dollar, Yonhap reported. The dollar climbed to an average of 1,275.58 won in the first quarter from 1,204.95 won in the same period last year, according to Bank of Korea data. The official price of Maruti Suzuki FRONX has been announced. Prices, specs and features for each variant are all explained here.

Seo Kang-hyun, executive vice president of Hyundai’s finance and accounting division, said, “We expect the global chip shortage to ease and low inventories in key markets to boost earnings in the second quarter. , an increase in vehicle production is expected.” Company earnings conference call.

He expected geopolitical risks, including the war between Russia and Ukraine, and unfavorable business conditions, such as interest rate hikes, could push demand down in the coming quarters.

To improve profitability, the company has launched an all-new Santa Fe SUV and other models this year, and is focusing on expanding production and sales of high-end vehicles this year, including Genesis models. expects Hyundai Motor to continue to report solid earnings throughout the year as vehicle demand is expected to remain strong.

“While working to minimize the impact of U.S. Inflation Law over the next year or two, Hyundai will be able to benefit from tailwinds in a market with strong demand for increased productivity and brand awareness. Let’s go,” said Kim Jin-woo. An analyst at Korea Investment Securities said by phone.

The Inflation Reduction Act (IRA), signed by U.S. President Joe Biden in August, gives tax credits of up to $7,500 to purchasers of EVs assembled only in North America, allowing Hyundai and Kia to enter the U.S. market. It has raised concerns that it could lose its status as a company because it manufactures most of its EVs in domestic factories for export to the United States.

On Tuesday, shares in an affiliate of Hyundai Motor Group reported strong quarterly results and the company’s plans to build a 6.5 trillion won battery factory in Georgia under a 50:50 joint venture with SK Group’s battery division SK On. rose according to the plan of

Operating profit hit a record high of KRW 3.59 trillion, up from KRW 1.93 trillion in the same period last year. Operating margin for the March quarter increased to 9.5% from 6.5% a year earlier.

Sales during the citation period increased by 25% from 30.3 trillion won to 37.78 trillion won. In his first three months, Hyundai sold a total of 1,021,712 cars on the global market, an increase of 13% year-on-year.

To enhance shareholder value, the Sonata Sedan and Santa Fe SUV makers will offer dividends on a quarterly or quarterly basis and will cancel 1% of treasury stock each year for the next three years starting in 2023.

(The above article first appeared on LatestLY on April 25, 2023 at 6:36 PM (IST). For news and updates on politics, the world, sports, entertainment and lifestyle, please visit our website Please log on to the site. latest.com).

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