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Hyundai Motor's Q2 profit rise 23pct, beats expectations

SEOUL: South Korea's Hyundai Motor Co reported on Thursday a 23 per cent rise in second-quarter profit that beat analysts expectations, helped by favourable exchange rates and solid sales of high-margin sport utility vehicles and hybrid cars.

Hyundai Motor, which together with its affiliate Kia Corp is the world's No.3 automaker by sales, reported a net profit of 4 trillion won (US$2.89 billion) for the April-June period, up from 3.2 trillion won in profit a year earlier.

That compared with an average profit forecast of 3.4 trillion won from 21 analysts compiled by LSEG SmartEstimate, which is weighted towards estimates from analysts who are more consistently accurate.

Its vehicle sales in the U.S., Hyundai's biggest revenue-generating market, edged up 2.2 per cent in the second quarter. High-margin SUV sales accounted for about 80 per cent of the total while hybrid vehicle sales jumped 42 per cent from the same period a year ago, Hyundai said.

Analysts also said the favourable exchange rate in the second quarter had helped Hyundai's profit growth.

The won slumped 4.3 per cent against the dollar in the quarter from a year earlier, boosting Hyundai's repatriated overseas sales and profit.

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