Hyundai's Profits Rise Slightly Despite Virus Slump

  • By Yoon Hyung-jun

    April 24, 2020 13:04

    Hyundai's sales and operating profit slightly rose in the first quarter of the year despite the coronavirus epidemic due to a weak won.

    But the outlook for the second quarter remains bleak as it will reflect the full impact of the epidemic.

    The automaker said Thursday that it posted first-quarter sales of W25.32 trillion and operating profit of W863.8 billion, up 5.6 percent and 4.7 percent on-year. But this was mainly because the won weakened from W1,125 against dollar on average to W1,193 over the same period.

    In terms of quarterly sales volume, the carmaker suffered an 11.6 percent fall to 903,371 cars in the January-March period, the first time since the third quarter of 2011 that it dropped below 1 million. The number plummeted 51.7 percent to just 63,000 cars, while it decreased 16.3 percent in Europe and 18.7 percent in India.

    The epidemic has forced Hyundai to shut down temporarily some of its plants at home and overseas but fixed costs had to be paid, which deteriorated its operating profit.

    Net profit, meanwhile, plunged 42.1 percent on-year in the first three months to W552.7 billion. 

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