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By Moses Ebosele –
Citing decrease in export, weak currencies and economic recession in emerging markets, Hyundai Motor Company has announced 7.0 per cent drop in its operating profit for the first half of 2016.
However, within the period, sales revenue increased 7.5 percent to KRW 47.03 trillion (auto: 36.66 trillion / finance and others: 10.37 trillion) from a year earlier owing to sales increase of Sports Utility Vehicles (SUVs) and Genesis models.
In the second quarter alone, sales revenue posted KRW 24.68 trillion with global sales of 1,285,860 units and operating profit increased 0.6 percent to KRW 1.76 trillion, from a year earlier.
According to the South Korean automobile firm, cumulative global sales for the first six months totalled 2,393,241 units (Korea: 350,006 / overseas: 2,043,235), a year-on-year decrease of 0.9 percent.
Specifically, Hyundai explained that slowing growth in emerging markets and impact from currency fluctuations have been the main culprit for the global sales drop.
Hyundai Motor in a statement sent to www.Citybusinessnews.com projected that the “unfavorable business environment” is likely to continue in the second half.
Hyundai Motor in a statement sent to www.Citybusinessnews.com projected that the “unfavorable business environment” is likely to continue in the second half.
Hyundail said: “In particular, the company anticipates further uncertainties in business conditions after the BREXIT referendum which took place last month”.
Explaining further, the statement read: “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 is planning to boost sales with Sports Utility Vehicles (SUVs) and strategic models”.
It added: “In addition, Hyundai Motor will strengthen growth momentum with the luxury brand GENESIS models, G90 and G80, and further develop state-of-the-art technologies within new models such as the IONIQ which is offered in three eco-friendly powertrain (Hybrid, Electric, Plug-in Hybrid).
“Hyundai Motor will continue its cooperation with suppliers and actively carry out more values to customers and stakeholders alike. Hyundai Motor also strives to build a more shareholder-friendly environment by increasing transparency and shareholder’s value”.
Explaining further, the statement read: “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 is planning to boost sales with Sports Utility Vehicles (SUVs) and strategic models”.
It added: “In addition, Hyundai Motor will strengthen growth momentum with the luxury brand GENESIS models, G90 and G80, and further develop state-of-the-art technologies within new models such as the IONIQ which is offered in three eco-friendly powertrain (Hybrid, Electric, Plug-in Hybrid).
“Hyundai Motor will continue its cooperation with suppliers and actively carry out more values to customers and stakeholders alike. Hyundai Motor also strives to build a more shareholder-friendly environment by increasing transparency and shareholder’s value”.
*Contact Editor at Citybusinessnews@yahoo.com
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