Hyundai's Profits Rise Slightly Despite Virus Slump
25 April, 2020
Hyundai's sales and operating profit slightly rose in the first quarter of the entire year regardless of the coronavirus epidemic because of a weak won.
However the outlook for the second quarter remains bleak since it will reflect the entire impact of the epidemic.
The automaker said Thursday that it posted first-quarter sales of W25.32 trillion and operating profit of W863.8 billion, up 5.6 percent and 4.7 percent on-year. But this is mainly as the won weakened from W1,125 against dollar normally to W1,193 over the same period.
In conditions of quarterly sales volume, the carmaker suffered an 11.6 percent fall to 903,371 cars in the January-March period, the 1st time since the third quarter of 2011 that it dropped below 1 million. The quantity plummeted 51.7 percent to just 63,000 cars, although it decreased 16.3 percent in Europe and 18.7 percent in India.
The epidemic has forced Hyundai to turn off temporarily a few of its plants in the home and overseas but fixed costs needed to be paid, which deteriorated its operating profit.
Net profit, meanwhile, plunged 42.1 percent on-year in the first three months to W552.7 billion.
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