Hyundai Motor Company has announced 2013 first-quarter earnings results. Despite various unfavourable internal and external factors, the company’s continued sales growth overseas led to a 6 percent increase in sales revenue, compared to the same period last year.
For the first three months of this year, sales revenue rose 6 percent to 21.37tr won broken down as follows; auto 17.66tr won/finance and others: 3.70tr won ) from a year earlier, thanks to strong sales outside Korea and the addition of a subsidiary, Hyundai KEFICO.
However, operating profit and net profit fell 10.7 percent and 14.9 percent to 1.87 trillion won and 2.88 trillion won (including non-controlling interest), respectively, mainly because of increased costs due to a weaker currency and increased one-time provisions.
Hyundai sold 1,171,804 units globally (Korea: 153,728 / overseas: 1,018,076) during the first quarter this year, a 9.2 percent increase from a year earlier. While its sales in Korea fell 0.7 percent from the same period a year ago, its overseas sales rose 10.9 percent to 1,018,076 units, offsetting the decline in the domestic market.
However, the brand’s production volume at its Korean plants declined during the first quarter due to some production stoppages on weekends, which increased fixed costs. However, once this issue is resolved, coupled together with a more stable outlook on currency exchange rates and Hyundai’s ongoing robust sales in overseas markets such as China and Brazil, the company’s earnings are forecast to improve going forward.
Authorities in the company forecasts that major auto markets, including some emerging markets, will keep posting slower growth amid fiercer competition and uncertain business environments. Nevertheless, it aims to strengthen its fundamentals through qualitative growth and quality management.
To do so, Hyundai plans to launch local strategic models, reinforce sales and service networks, as well as carry out aggressive marketing activities. Such efforts have already been in progress, posting significant results.