Hyundai Motor Announces 2015 1H Business Results
• Hyundai Motor sells 2.4 million units worldwide in the first half of 2015
• Sales revenue and net profit totalled KRW 43.76 trillion and KRW 3.77 trillion,
• Profits declined mainly on strong KRW and economic recession in emerging
July 23, 2015 - Hyundai Motor Company, South Korea’s largest automaker, today announced its business results for the first half of 2015. Sales volume, revenue and operating profit declined from the same period last year, due to unfavorable external factors such as strong KRW against euro and currencies of developing countries.
For the first six months of 2015, sales revenue declined 1.4 percent to KRW 43.76 trillion (Auto: 34.36 trillion / finance and others: 9.41 trillion) from a year earlier. Operating profit and net profit also fell 17.1 percent and 13.8 percent to KRW 3.34 trillion and KRW 3.77 trillion (including non-controlling interest), respectively.
Hyundai Motor’s cumulative global sales for the first six months totalled 2,415,777 units (Korea: 335,364 / overseas: 2,080,413), a year-on-year decrease of 3.2 percent. Slowing growth in emerging markets and impact from currency fluctuations have been the main culprit for the global sales drop.
In the second quarter alone, sales revenue increased 0.3 percent to KRW 22.82 trillion with global sales of 1,232,943 units. However, both operating profit and net profit declined 16.1 percent and 23.8 percent to KRW 1.75 trillion and KRW 1.79 trillion, respectively, from a year earlier.
Hyundai Motor forecasts that an unfavorable business environment is likely to continue in the second half. In particular, the company anticipates that major auto markets such as China and some emerging markets will continue posting slower growths, leading to steeper competition amongst automakers.
Nevertheless, Hyundai Motor will continue its effort to focus on strengthening competitiveness in different regions. To do so, Hyundai Motor is planning to boost sales in the global market with new models and strategic models.
The newly introduced All-new Tucson is gaining positive market response, along with strategic models like ix25 and Creta, which are continuing its new model launch effect. Especially, additional introduction of new models will refresh Hyundai Motor’s sales momentum.
In addition, recent weak trend of the KRW against the USD is also positive for the company to regain profit in the second half.
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, which leads the Hyundai Motor Group, an innovative business structure capable of circulating resources from molten iron to finished cars, offers top-quality best-sellers such as Elantra, Sonata and Genesis. Hyundai Motor has eight manufacturing bases and seven design & technical centers worldwide and in 2014, sold 4.96 million vehicles globally. With almost 100,000 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.
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