* Q1 net profit 2.52 trln won vs consensus of 2.39 trln won
* Competition, supply restraints hit sales, margins in
Korea, U.S.
* Outperforms in China with new model, factory
* Shares up 0.5 pct after results
By Hyunjoo Jin
SEOUL, July 25 (Reuters) – Hyundai Motor Co’s
second-quarter net profit stayed near a record high achieved a
year earlier, beating market forecasts, as strong China growth
overpowered rising competition and tight supply that eroded
sales at home and in the United States.
Hyundai Motor, which combined with its affiliate Kia Motors
Corp is the world’s fifth-biggest automaker, on
Thursday reported a 2.52 trillion Korean won ($2.26 billion) net
profit for April to June, compared with a consensus forecast of
2.39 trillion won from a Reuters’ poll of analysts.
This compared with 2.55 trillion won in net profit a year
earlier, and 2.09 trillion won the preceding quarter.
The South Korean automaker posted an operating profit of
2.41 trillion won on sales of 23.18 trillion won in the second
quarter.
Hyundai shares went up 0.5 percent in a flat wider market
as of 0509 GMT. Hyundai shares have inched up 2.3
percent so far this year, outperforming the wider market
that has slipped 4.3 percent.
Sales in China jumped 36 percent in the first half from a
year earlier, even as the world’s second biggest economy has
slowed in nine of the past 10 quarters.
Similarly, Ford Motor Co reported on Wednesday
increased demand for its cars and trucks in
China.
Last year, Hyundai started production at its third plant and
launched a Chinese version of its Elantra compact, as Japanese
rivals reeled from a sales decline stemming from a territorial
row.
Hyundai said its South Korean sales fell 0.7 percent in the
first half from a year earlier, while its U.S. sales inched up
1.2 percent.
Hyundai Motor’s South Korean labour union refused to work
during weekends over wages from March 9 to June 1, hurting both
domestic shipments and exports to the United States and other
markets from its biggest manufacturing base.
Eyes are on whether Hyundai’s labour union at home will
stage summer strikes for a second consecutive year over annual
wage talks, after its worst walkout last year in terms of
production loss.
The South Korea won appreciated 2.6 percent against the
dollar on average in the second quarter from a year earlier,
reducing the value of its repatriated foreign earnings.
In those crucial markets, Hyundai struggled to defend market
share amid intensifying competition and the ageing of its models
such as Sonata and Elantra. Hyundai cut vehicle prices or gave
more incentives from a year ago to lure customers from rivals
and to ignite demand for its ageing models, analysts said.
Hyundai, once a stellar performer in the U.S market, has
been losing market share this year, partly because its factories
have been unable to keep up with demand in the recovering market
which posted its strongest month since 2007 in June.
In Europe, Hyundai’s sales declined 9 percent, with the
region’s car sales slumping to their lowest levels in 20 years
in the first half of this year because of dismal economic
conditions.
Source Article from http://www.reuters.com/article/2013/07/25/hyundaimotor-earnings-idUSL4N0FT1P520130725
