Profit statements

Hyundai Motor’s third-quarter net profit drops 3%, well below estimates

Redesigns with benefits, revised vehicle sales forecasts

SEOUL, October 24 (Reuters)Hyundai Motor Co of South Korea 005380.KS raised its full-year revenue and profit margin forecast on Monday, betting on strong sales of luxury models and sport utility vehicles and a slump in the local currency after a lackluster third quarter .

But in a mixed outlook, the company said it now expects to sell just 4.01 million vehicles in total this year, down 7% from the 4.32 million previously forecast, as the he auto industry continues to struggle with supply chain disruptions involving chips and other components.

“While Hyundai Motor expects global chip and component shortages to gradually recover in the fourth quarter, the company expects external uncertainties to continue, including inflation, supply chain disruption and fluctuating commodity prices due to geopolitical issues,” he said in a statement. .

Hyundai, which together with its subsidiary Kia Corp 000270.KS is one of the world’s top five automakers by sales, said third-quarter operating profit fell 3% due to 1.36 trillion won ($906 million) provision to pay the costs linked to engine quality problems.

The provision, announced last week, amounted to more than half of the estimated third-quarter net profit of 2.4 trillion won drawn by 17 analysts.

Revenue for the quarter jumped 31% to 37.7 trillion won, below the 36 trillion won analysts expected.

Shares of Hyundai Motor, which together with its subsidiary Kia Corp 000270.KS is one of the world’s top 5 automakers by sales, down 3% at 0537 GMT, compared to a 0.8% rise in the broader KOSPI market KS.11.

($1 = 1,434.4400 won)

(Reporting by Heekyong Yang and Joyce Lee; Editing by Kenneth Maxwell)

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