Hyundai Motor posts lowest Q4 profit in six years

By Park Sae-jin Posted : January 25, 2017, 17:23 Updated : January 25, 2017, 17:23

[Courtesy of Hyundai Motor]


South Korea's leading automaker, Hyundai Motor Co., reported a 30 percent drop in fourth-quarter net profit Wednesday, reflecting sluggish sales and lost production caused by a prolonged work stoppage.

In the October-December period last year, net profit stood at 1.07 trillion won (917 million US dollars), down 30.1 percent from the same period in 2015. Sales fell 0.9 percent on-year to 24.54 trillion won.

Operating profit nosedived 32.6 percent on-year to 1.02 trillion won, marking the lowest quarterly earning since 2010, Hyundai said, attributing the fall to rising cost caused by a series of walkouts that cost $2.7 billion US dollars.

For the entire year of 2016, Hyundai's net profit fell 12 percent from a year earlier to 5.72 trillion won while sales rose 1.8 percent to 93.65 trillion won. The year's total operating profit slipped 18.3 percent to 5.19 trillion won.

Last year, Hyundai sold 4.86 million cars, down 2.1 percent from a year earlier. This year, the company plans to sell 5.08 million cars globally, up 4.5 percent on-year.

Hyundai chairman Chung Mong-koo has adopted an aggressive strategy to weather an unfavorable business condition by releasing 10 new models this year.
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