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Hyundai Motor's Quarterly Profit Skids as Operating Income Slumps 21%

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Hyundai Motor's Quarterly Profit Skids as Operating Income Slumps 21%

Hyundai Motor's (KRX:005380) second-quarter operating income fell 21% from a year earlier and missed market estimates, as weaker profitability overshadowed a modest increase in revenue.

The automaker posted operating income of 2.85 trillion won for the second quarter, down from 3.60 trillion won a year earlier, according to a Thursday earnings release.

The result missed the 3.2 trillion won consensus estimate compiled by LSEG SmartEstimate, according to a Reuters report.

Attributable net profit declined 16% to 2.52 trillion won from 3 trillion won a year earlier.

Revenue rose 1.9% to 49.2 trillion won from 48.3 trillion won, the filing showed.

In the U.S., wholesale sales rose year over year despite industry demand increasing just 0.5%. Hyundai said demand shifted toward practical models, lifting sedan sales, while hybrid electric vehicles accounted for a record regional sales share.

European wholesale sales declined amid intensifying competition, geopolitical uncertainty and the timing of major model launches later this year.

In South Korea, wholesale sales fell due to supply chain disruptions and major new model launches scheduled for the second half of the year.

Hyundai said sales momentum is expected to recover as key models are rolled out, while electric vehicle sales increased with support from government incentives and company promotions.

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