Hyundai Motor Announces 2016 Business Results
Jan. 25, 2016 - Hyundai Motor Company, South Korea’s largest automaker, today announced its 2016 full-year business results. Sales volume and operating profit declined from the same period last year due to high production cost caused by series of labor strikes and continued economic stagnancies in emerging markets.
- Hyundai Motor sold 4.86million units worldwide in 2016
- Sales revenue and operating profit at KRW 93.65 trillion and KRW 5.19 trillion, respectively
- Profits declined mainly due to high production cost caused by series of labor strikes in the latter half of 2016 and continued economic stagnancies in emerging markets
- Hyundai Motor to regain sales momentum by expanding line-up of SUV, GENESIS and eco-friendly models
- Hyundai Motor to increase its R&D investment and strengthen its competiveness for core future technology
- Hyundai Motor announces new dividend policy of 30 to 50 percent of free cash flows (FCF)
For the year 2016, Hyundai Motor Company’s global sales totalled 4,857,933 units (Korea: 656,526 / overseas: 4,201,407), down 2.1 percent year-on-year.
Despite year-on-year decrease in sales, Hyundai Motor’s sales revenue increased 1.8 percent to KRW 93.65 trillion (auto: KRW 72.68 trillion / finance and others: KRW 20.97 trillion) from a year earlier owing to sales increase of SUVs and GENESIS models. Operating profit fell 18.3 percent to KRW 5.19 trillion and net profit showed a 12.1 percent decrease to KRW 5.72 trillion, for 2016.
In the fourth quarter alone, global sales totalled 1,380,024 units while sales revenue posted KRW 24.54 trillion with operating profit of KRW 1.02 trillion.
Hyundai Motor forecasts the business environment to be ever more uncertain due to continued sluggish global economy and possibility of increase in protectionist trade policies.
Nevertheless, Hyundai Motor will continue its effort to focus on strengthening competitiveness and product quality in the global automotive market.
To do so, Hyundai Motor will launch variety of new cars and boost sales of SUVs, GENESIS models and eco-friendly models.
Also by continuously investing in R&D, Hyundai Motor will focus on three core future technologies Clean Mobility, Freedom in Mobility and Connected Mobility, to ensure future growth.
Hyundai Motor will continue its cooperation with suppliers and actively carry out more values to customers. Hyundai Motor also strives to build a more shareholder-friendly environment by increasing transparency and shareholder’s value. The company announced its new dividend policy which outlines a payout plan of 30 to 50 percent of free cash flows (FCF).
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 Company is committed to becoming a lifetime partner in automobiles and beyond. The company leads the Hyundai Motor Group, an innovative business structure capable of circulating resources from molten iron to finished cars. Hyundai Motor has eight manufacturing bases and seven design & technical centers worldwide and in 2016 sold 4.86 million vehicles globally. With more than 110,000 employees worldwide, Hyundai Motor continues to enhance its product line-up with localized models and strives to strengthen its leadership in clean technology, starting with the world’s first mass-produced hydrogen-powered vehicle, ix35 Fuel Cell and IONIQ, the world’s first model with three electrified powertrains in a single body type.
More information about Hyundai Motor and its products can be found at:
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