Hyundai Motor Q2 Profit Falls 21%, Misses Estimates Amid Weak Sales, Rising Costs

Hyundai Motor Q2 Profit Falls 21%, Misses Estimates Amid Weak Sales, Rising Costs

Seoul, July 23 (VoM News): Despite the support from a weaker South Korean won, Hyundai Motor faces a major decline in second-quarter profit, as weaker vehicle sales, production disruptions and rising costs weighed on earnings.

As per details available with VoM Newszm, Hyundai Motor on Thursday reported a 21 per cent decline in second-quarter operating profit, currently possess a operating profit of 2.9 trillion won ($1.98 billion) for the April-June quarter, down from 3.6 trillion won a year earlier.

Business & marketing analysts had expected a profit of around 3.2 trillion won, and revenue, however, rose 2 per cent year-on-year to 49.2 trillion won.

Following the earnings announcement, Hyundai Motor shares traded about 2 per cent higher.

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The company said it expects macroeconomic uncertainty to continue and warned that competition in the global automotive industry is likely to intensify.

Hyundai’s results reflect broader challenges facing the auto sector, including rising energy and raw material costs, supply chain disruptions, US tariff-related pressures and the impact of ongoing geopolitical tensions in the Middle East.

Hyundai Motor, along with its affiliate Kia, is the world’s third-largest automaking group by vehicle sales.