Seoul [South Korea], October 27 (ANI/Global Economic): Hyundai Motor's operating profit in the third quarter (July-September) fell 14.8 per cent from the previous quarter to 1.6067 trillion won. It is analyzed because sales decreased by 9.9 per cent due to production delays by the semiconductor shortage.
Hyundai Motor Company held a Q3 2021 earnings conference call at its headquarters in Seoul on the 26th, and announced that its Q3 earnings based on IFRS consolidated financial statements recorded 898,906 units sold and 28.8672 trillion won (22.57979 trillion won for automobiles, 6.2893 trillion won for finance and others) in sales, 1.6 trillion won in operating profit, 1.93 trillion won in earnings before tax, and 1.4869 trillion won in net profit (including non-controlling interests).
"Sales decreased year-on-year due to production disruptions caused by global automobile semiconductor shortage," said an official from Hyundai Motor. "Despite a decrease in sales volume and unfavourable exchange rates, operating profit increased year-on-year due to improved sales mix and reduced cost of quality."
"As sales increased in the new markets, which had somewhat slowed down during COVID-19 pandemic, average selling price (ASP) is partially affected. However, the expansion of sales of high value-added models such as Genesis and SUV led to improved profitability," he added, "The prolonged global semiconductor shortage is expected to continue until the end of this year or next year. Therefore, it seems to take a long time to be fully normalized."
Hyundai Motor sold 898,906 units in the global market in the third quarter of this year. It is a decrease of 9.9 per cent year-on-year.
Despite strong sales of new SUV models such as IIONIQ 5, GV70, and Tucson, 154,747 units were sold in the domestic market, down 22.3 per cent year-on-year due to last year's special consumption tax cuts and a decrease in production by semiconductor shortage this year.
In overseas markets, 744,159 units were sold, down 6.8 per cent year-on-year. Sales in new markets such as Latin America and Middle East, which had slowed down due to COVID-19 last year, increased but were affected by production disruptions due to global semiconductor shortage.
Sales rose 4.7 per cent year-on-year to 28.8672 trillion won. Sales increased as Hyundai Motor has improved its sales mix focusing on Genesis and electric vehicles to reduce the impact of a drop in total production and a fall in the won-dollar exchange rates. The average won-dollar exchange rate decreased 2.6 per cent year-on-year to 1,157 won in the third quarter of this year. (ANI/Global Economic)