Hyundai Motor Reports 2011 First Quarter Earnings - Hyundai sells 919,130 units worldwide in the first quarter - Sales revenue and net profit stand at 18.2 trillion won and 1.9 trillion won - Hyundai adopts new accounting system, IFRS, from this quarter
Hyundai Motor Company, South Korea’s largest automaker, sold 919,130 units (domestic: 166,664 / overseas: 752,466) worldwide in the first quarter of 2011, up 9.2 percent from the same period a year earlier in spite of global economical and political uncertainties.
Hyundai Motor posted solid earnings based on its world-class quality and strong product competitiveness: Net profit rose 46.5 percent to 1.88 trillion won (including non controlling interest) in the first quarter, from a year earlier. Hyundai Motor’s operating profit stood at 1.83 trillion won on sales revenues of 18.2 trillion won (Auto business: 15.5 trillion / Finance and others: 2.7 trillion). Sales revenues jumped 21.4 percent due to a rise in sales volume, improved product mix and increase in revenues from the finance sector.
Starting from this quarter, Hyundai Motor based its earnings on the International Financial Reporting Standards (IFRS), replacing K-GAAP.
In the Korean domestic market, sales were slightly down by 0.8 percent to 166,664 units despite the successful launches of the new Azera (badged as Grandeur in some markets) and Accent, because of the exceptionally high sales results during the same period last year.
However, in overseas markets, Hyundai Motor’s sales increased 11.6 percent to 752,466 units (export: 243,935 / overseas plants: 508,531), mainly led by sales of the new Elantra (badged as Avante in some markets).
Under the newly adopted accounting standards, Hyundai Motor has 74 affiliates in its consolidated statement, compared to the previous 95. Some 21 affiliates, including Kia Motors, Hyundai Hysco, Hyundai Wia, Hyundai Dimos and Hyundai Powertech are no longer included.
Hyundai Motor expects the new standard to raise shareholder value by providing domestic and foreign investors more transparent and effective corporate information.
Hyundai Motor’s ongoing efforts to increase brand awareness and achieve qualitative growth have been recognized in the industry. Recently, Hyundai Motor ranked third in J.D. Power and Associates’ Initial Quality Study, the highest ranking Hyundai ever received.
Hyundai Motor will continue to focus on maximizing customer satisfaction through world class quality and services, as well as increasing communication and cooperation with its suppliers to achieve major goals for 2011, including its global sales target of 3.9 million units.
Established in 1967, Hyundai Motor Co. has grown into the Hyundai Motor Group which has ranked as the world’s fifth-largest automaker since 2007 and includes more than two dozen auto-related subsidiaries and affiliates. Hyundai Motor, which has six manufacturing bases outside of South Korea, sold approximately 3.6 million vehicles globally in 2010. Hyundai vehicles are sold in 186 countries through some 5,300 dealerships and showrooms. Further information about Hyundai Motor and its products is available at www.hyundai.com
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