Hyundai Motor Announces 2012 Business Results
- Revenue rises 8.6%, net profit up 11.7% on increased sales, new models
- Hyundai aims to sell 4.66 million units globally in 2013
Jan. 24, 2013 - Hyundai Motor Company, the fastest-growing automaker by brand, today announced its 2012 full-year earning results. In spite of the challenging business environment with fluctuating exchange rates, Hyundai managed to sustain its upward momentum.
For the year 2012, sales revenue rose 8.6 percent to 84.47 trillion won (automotive: 71.31 trillion / finance and other: 13.16 trillion) from a year earlier, helped by increased sales volume and improved product-mix. Operating profit rose 5.1 percent to 8.44 trillion won, while net profit increased 11.7 percent to 9.06 trillion won (including non-controlling interest), fueled by robust performance at the company’s overseas plants and subsidiaries.
Hyundai sold 4,410,357 units globally (Korea: 667,496 / overseas: 3,742,861) in 2012, an 8.6 percent increase from a year earlier. While its sales in Korea fell 2.2 percent to 667,496 units from the previous year, its overseas sales rose 10.8 percent to 3,742,861 units (exports: 1,243,763 / overseas plants: 2,499,098). In particular, sales jumped more than 10 percent in Europe to 444,000 units, bucking the market’s trend of shrinking demand.
In the fourth quarter alone, sales revenue increased 10.7 percent to 22.72 trillion won (automotive: 18.75 trillion / finance and other: 3.97 trillion) with global sales of 1,226,847 units. However, operating profit decreased 11.7 percent to 1.83 trillion won from a year earlier, mainly due to currency fluctuations unfavorable to Hyundai.
To overcome sluggish demand in the Korean domestic market, Hyundai aggressively expanded exports from Korea, while boosting sales in its overseas markets through its local production and sales network. Hyundai also enhanced its profitability through improved product-mix and efficient marketing based on qualitative growth.
Hyundai forecasts that the global auto market, including some emerging markets, will face slowing demand amid fiercer competition and tougher government policies. Nevertheless, Hyundai aims to sell 4.66 million vehicles globally in 2013 (Korea: 668,000 / overseas: 3,992,000), a 5.7 percent increase from last year. Hyundai plans to achieve this by strengthening its fundamentals by promoting qualitative growth and securing future competitiveness, rather than quantitative growth.
Cautionary Statement with Respect to Forward-Looking Statements
In this release and in related comments by Hyundai Motor’s management, our use of the word “expect,” “anticipate,” “project,” “estimate,” “forecast,” “objective,” “plan,” “goal,” “outlook,” “target,” “pursue” and similar expressions is intended to identify forward looking statements.
The financial data discussed herein are presented on a preliminary basis before the audit from Independent Auditor; final data will be included in HMC’s Independent auditors report. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors. Such factors include, among others, the following : change in economic conditions, currency exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the corporation’s new products; significant changes in the competitive environment; changes in laws, regulations and tax rates; and the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and time planned by management.
We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.
About Hyundai Motor
Established in 1967, Hyundai Motor Co. has grown into the Hyundai Motor Group, with more than two dozen auto-related subsidiaries and affiliates. Hyundai Motor -- which has seven manufacturing bases outside of South Korea including Brazil, China, the Czech Republic, India, Russia, Turkey and the U.S. -- sold 4.4 million vehicles globally in 2012. Hyundai Motor, which employs over 80,000 worldwide, offers a full line-up of products including small to large passenger vehicles, SUVs and commercial vehicles. Further information about Hyundai Motor and its products is available at www.hyundai.com.
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