Hyundai's Sales Surpass W100 Trillion
23 January, 2020
Hyundai's annual revenues have surpassed W100 trillion for the first time ever, powered by strong sales of SUVs like the small Tucson and large Pallisade (US$1=W1,165).
Hyundai said Wednesday that its sales rose 9.3 percent on-year to W105.8 trillion last year while operating profit surged 52 percent to W3.7 trillion, the first rise since 2012.
The operating profit margin therefore rose from 2.5 percent in 2018 to 3.5 percent.
A Hyundai staffer said, "Sales of high-margin Pallisade SUVs rose, while earnings also got a boost from the weak won."
Hyundai makes money overseas in U.S. dollars, which are then converted back into won, so a strong greenback made results look better on paper to the tune of around W1 trillion.
SUVs accounted for 40.5 percent of total sales, up from 35.8 percent in 2018.
However, sales volume actually declined 3.6 percent to 4.43 million cars. Domestic sales rose 2.9 percent to some 742,000 cars, but overseas sales fell 4.8 percent to 3.68 million, particularly in China (down 17.7 percent) and India (down 7.2 percent).
Affiliate Kia's revenues totaled W58.15 trillion and operating profit W2.01 trillion last year, up 7.3 percent and a whopping 73.6 percent. But sales volume also fell 1.4 percent to 2.77 million cars.
Sales of the large Telluride SUV, which totaled almost 60,000 units, contributed heavily to strengthened profitability.
Source:
TAG(s):