(ATTN: CORRECTS figures in 2nd para; ADDS details throughout)
By Choi Kyong-ae

SEOUL, July 22 (Yonhap) — South Korea’s Hyundai Motor Co. said Thursday its second-quarter net profit more than quintupled compared with a year earlier on a base effect and strong sales of its high-end sport utility vehicles

Net profit for the three months that ended in June jumped to 1.98 trillion won (US$1.7 billion) from 377.27 billion won in the same period last year, the company said in a statement.

The strong result was helped by last year’s low base effect from the COVID-19 pandemic and robust demand for Hyundai’s high-margin SUV models that helped offset output disruptions by chip shortages, according to Seo Gang-hyun, an executive in charge of the company’s finance and accounting division.

“Faced with worsening chip shortages in May and June, Hyundai was quick to change vehicles in production and lineups to minimize the impact from the parts problems. Such efforts allowed the company to navigate the chip shortage better than other carmakers,” he said.

A combination of its improved product mix, lower incentives and higher average selling prices, particularly in the world’s most important U.S. market, also helped boost the quarterly profits, Hyundai said.

Looking ahead, the company expected prolonged component-supply issues, rising raw material prices, and weak emerging market currencies to continue to weigh on earnings results in the third quarter.

To prop up sales in the second half, Hyundai plans to launch the GV70 SUV, the all-electric G80 sedan and the Santa Cruz pickup truck in the U.S. market.

Operating profit nearly tripled to 1.66 trillion won in the second quarter from 590.32 billion won a year ago. Sales rose 39 percent to 30.33 trillion won from 21.86 trillion won during the same period.

From January to June, net income jumped to 3.5 trillion won from 929.95 billion won in the year-ago period.
Operating profit climbed to 3.54 trillion won in the first half from 1.45 trillion won during the same period last year. Sales rose 22 percent to 57.72 trillion won from 47.18 trillion won over the cited period.

(2nd LD) Hyundai Q2 net soars on base effect, SUV models

kyongae.choi@yna.co.kr
(END)


Japan travel news, japan travel guides, japan holiday destinations and japan reviews

LATEST NEWS

NEWS RELATED

Convenience factor drives online sales of mobile phones, FMCG products

Online sales of smartphones crossed the halfway mark of total shipments for the first time in India in the April-June quarter, when a number of consumer goods too witnessed a steep increase in volumes through the ecommerce channel, driven by the convenience factor during the pandemic. The contribution of online…

Read more: Convenience factor drives online sales of mobile phones, FMCG products

Twin Star to approach SC against NCLAT stay in Videocon case

Twin Star Technologies has decided to approach the Supreme Court to vacate a National Company Law Appellate Tribunal (NCLAT) order staying the bankruptcy court’s approval to the revival plan for Videocon Industries. Twin Star is owned by Volcan Investments, a company of Vedanta Group’s Anil Agarwal. “Once the committee of…

Read more: Twin Star to approach SC against NCLAT stay in Videocon case

(2nd LD) U.S. firm, 8 others submit LOIs for SsangYong Motor

(ATTN: CHANGES photos; ADDS details throughout) By Choi Kyong-ae SEOUL, July 30 (Yonhap) — A U.S. vehicle importer and eight other companies have submitted letters of intent to acquire SsangYong Motor Co., SsangYong said Friday. U.S.-based Cardinal One Motors, SM Group and Edison Motors Co. confirmed they joined the race…

Read more: (2nd LD) U.S. firm, 8 others submit LOIs for SsangYong Motor

Nine groups join race to take over SsangYong Motor

This file photo shows the main gate of SsangYong Motor`s Pyeongtaek plant, 70 kilometers south of Seoul. (Yonhap)The race to acquire the troubled SsangYong Motor is heating up beyond expectations, with nine groups reportedly having expressed interest. According to local reports, a total of nine have submitted letters of intent…

Read more: Nine groups join race to take over SsangYong Motor

(LEAD) U.S. firm, 8 others submit LOIs for SsangYong Motor

(ATTN: CHANGES headline and lead; ADDS details in paras 3-4, 12) By Choi Kyong-ae SEOUL, July 30 (Yonhap) — A U.S. vehicle importer and eight other companies have submitted letters of intent to acquire SsangYong Motor Co., SsangYong said Friday. U.S.-based Cardinal One Motors, SM Group and Edison Motors Co.…

Read more: (LEAD) U.S. firm, 8 others submit LOIs for SsangYong Motor

Hyosung Q2 net income up 409.7 pct to 187.4 bln won

SEOUL, July 30 (Yonhap) — Hyosung Corp. on Friday reported its second-quarter net profit of 187.4 billion won (US$162.9 million), up 409.7 percent from a year earlier. The company said in a regulatory filing that it posted 218 billion won in operating profit for the quarter, compared with 9 billion…

Read more: Hyosung Q2 net income up 409.7 pct to 187.4 bln won

(LEAD) Samsung Heavy Industries reduces net loss in Q2

(ATTN: RECASTS headline, lead; UPDATES with more info throughout; ADDS photo) By Nam Kwang-sik SEOUL, July 30 (Yonhap) — Samsung Heavy Industries Co. said Friday that it narrowed its net loss in the second quarter from a year earlier thanks to increased sales. Its net loss reached 447.4 billion won…

Read more: (LEAD) Samsung Heavy Industries reduces net loss in Q2

Hotel Shilla shifts to black in Q2

SEOUL, July 30 (Yonhap) — Hotel Shilla Co. on Friday reported its second-quarter net profit of 12 billion won (US$10.5 million), swinging from a loss of 67.7 billion won a year earlier. Operating income for the April-June period was 46.4 billion, compared with a loss of 63.4 billion won a…

Read more: Hotel Shilla shifts to black in Q2

Hyosung TNC shifts to black in Q2

Mando shifts to profits in Q2

Samsung Heavy Industries remains in red in Q2

Green Cross Q2 net profit down 46 pct to 7.5 bln won

U.S. firm, 2 local firms submit LOIs for SsangYong Motor

Incoming foreigners increase 109 pct in June due to base effect: data

Doosan Heavy grabs 550 bln-won deal to build LNG storage tanks

LX International Q2 net income up 426.1 pct to 111 bln won

OTHER NEWS