(2nd LD) Hyundai Motor Q3 net falls 24.2 pct on production disruptions, weak demand

(ATTN: UPDATES with latest details from 5th para; TRIMS lead; ADDS byline)
By Kim Eun-jung

SEOUL, Oct. 29 (Yonhap) -- Hyundai Motor Co., South Korea's leading automaker, said Thursday its third-quarter net profit fell 24.2 percent from a year earlier due to production disruptions and sluggish global demand.

Net profit for the July-September period came to 1.93 trillion won (US$1.4 billion), down from 2.54 trillion won a year earlier, the company said in a regulatory filing.

Operating profit rose 5.5 percent on-year to 2.67 trillion won, while revenue fell 3.4 percent to 45.11 trillion won.

The earnings fell short of market expectations. The average estimate of net profit by analysts stood at 2.12 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Hyundai Motor attributed its third-quarter operating profit growth to favorable foreign exchange movements, cost-cutting efforts and increased sales of hybrid vehicles.

The company sold 920,710 vehicles globally in the July-September period. Domestic sales plunged 27.2 percent on-year to 131,468 units, largely due to production disruptions caused by labor strikes, while overseas sales fell 8 percent to 789,242 units amid weak global demand.

Sales of electrified vehicles slipped 2.7 percent on-year to 245,540 units, accounting for 26.7 percent of global sales. Hybrid electric vehicles (HEVs) represented 18.2 percent of total sales.

Looking ahead, Hyundai Motor warned of continued uncertainty in the global automotive market and intensifying competition from Chinese rivals, but pledged to expand production, introduce new models and improve cost efficiency in the fourth quarter.

"We will respond flexibly to changing demand by offering a diverse range of powertrains and tailoring our vehicle lineup to each market," a company official said. "We will normalize production, expand sales of new models and reduce costs to overcome the challenging business environment and strengthen our mid- to long-term competitiveness."

Reflecting production disruptions and rising raw material costs, Hyundai Motor lowered its annual wholesale sales target to 4 million vehicles from 4.15 million and reduced its planned investment to 16 trillion won from 17.8 trillion won.

The automaker also announced a third-quarter dividend of 2,500 won per share for both common and preferred shares, with the record date set for Nov. 30.

ejkim@yna.co.kr
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