Hyundai Motor Announces 2015 3Q Business Results
Hyundai Motor sold 3.54 million units worldwide through 2015 third quarter Sales revenue and net profit recorded at KRW 67.19 trillion and KRW 4.98 trillion, respectively Profits declined mainly due to developing markets’ strong currencies against KRW and increased expenditure on promotion and marketing efforts
October 22, 2015 – Hyundai Motor Company, South Korea’s largest automaker, today announced its 2015 third-quarter business results. Sales revenue increased while sales volume and operating profit declined from the same period last year, mainly due to strong KRW against currencies of developing countries including Russia, Brazil and Turkey. Also, increased incentives and promotions in the US and other regions as well as increased marketing efforts for new car launches contributed to the decline.
For the first nine months of 2015, sales revenue increased 2.3 percent to KRW 67.19 trillion (Auto: 52.64 trillion / finance and others: 14.54 trillion) from a year earlier. Revenue increase of finance and others was the main reason for sales revenue increase.
However, operating profit and net profit fell 14.7 percent and 16.9 percent to KRW 4.84 trillion and KRW 4.98 trillion (including non-controlling interest), respectively.
Hyundai Motor’s cumulative global sales for the first nine months totaled 3,537,573 units (Korea: 497,867 / overseas: 3,039,706), a year-on-year decrease of 2.4 percent. Stagnant demand for passenger vehicles and impact from currency fluctuations are the main reasons for the global sales drop.
In the third quarter alone, sales revenue increased 10.1 percent to 23.43 trillion won (auto: 18.29 trillion / finance and others: 5.14 trillion) with global sales of 1,121,796 units. However, both operating profit and net profit declined 8.8 percent and 25.3 percent to KRW 1.50 trillion and KRW 1.21 trillion, respectively.
Hyundai Motor forecasts that an unfavorable business environment is likely to continue in 2015. Although economy in developed countries is on recovery, emerging markets including China will continue posting slower growths, leading to steeper competition amongst automakers.
Nevertheless, Hyundai Motor will continue its effort to boost sales and improve competitiveness in different regions by introducing new models and strategic models for local markets.
Hyundai Motor’s sub-compact SUV Creta and the newly introduced All-new Tucson are continuing their new model launch effects. In addition, the introduction of All-new Elantra will also likely refresh Hyundai Motor’s sales momentum.
Overall, Hyundai Motor forecasts that its fourth-quarter performance will improve compared to the recent quarter based on several positive factors such as weak trend of KRW against USD and new
Hyundai Motor Company 231, Yangjae-Dong, Seocho-Gu, Seoul, 137-938, Korea T +82 (0)2 3464 2152~2160 www.hyundai.com model launches.
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.
More information about Hyundai Motor and its products can be found at: http://worldwide.hyundai.com or http://www.hyundaiglobalnews.com
Contact Global PR Team [email protected] +82 (0)2 3464 2152 ~ 2160
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Hyundai Motor Company 231, Yangjae-Dong, Seocho-Gu, Seoul, 137-938, Korea T +82 (0)2 3464 2152~2160 www.hyundai.com