Hyundai Motor reported a 21% drop in second-quarter operating profit on Thursday, missing analysts’ forecasts. The decrease was caused by lower vehicle sales, production issues, and rising costs, which outweighed the benefits of a weaker won.
Hyundai, together with its affiliate Kia Corp, ranks as the third-largest automaking group worldwide by sales, recording an operating profit of 2.9 trillion won ($1.98 billion) for April-June, down from 3.6 trillion won a year earlier.
This contrasted with the 3.2 trillion won estimate from LSEG SmartEstimate, which leans toward analysts with more consistent accuracy.
Hyundai Motor also reported a 2% increase in revenue from the previous year, reaching 49.2 trillion won.
The company anticipates ongoing macroeconomic uncertainty and expects increased industry competition.
The weak results highlight broader challenges in the auto sector, as automakers face rising energy and raw material costs and supply chain disruptions caused by U.S. tariffs and conflicts in the Middle East.
Hyundai stock rose by 2% following the announcement.
By CEO NA Editorial Staff
