[Yonhap News Photo]
Hyundai Motor was in deep trouble this year due to poor sales caused by a missile dispute between Seoul and Beijing as well as poor sales in the United States while domestic sales were stagnant following a series of recalls.
Hyundai's second-quarter net profit nosedived 48.2 percent on-year to 914 billion won (816 million US dollars). Operating profit fell 24 percent to 1.34 trillion won and sales showed a 1.5 percent drop to 24.3 trillion won.
Hyundai's first-half net profit fell 34 percent from a year ago to 2.3 trillion won and operating profit was down 16 percent to 2.59 trillion won.
In China, Hyundai sold 301,277 vehicles in the first six months, down 42 percent from a year ago, due to competition with local brands and the deployment of a US missile shield that has strained ties between Seoul and Beijing, leading to trade retaliation.
Helped by the growing popularity of compact SUVs including "KONA" at home and "Creta" abroad, Vice President and CFO Choi Byeong-cheol said that Hyundai would try to improve profitability in the second half by releasing new models.
This year, Hyundai will release a strategic new SUV, ix35, a news small sedan and an electric vehicle in China while introducing strategic models in emerging markets such as Russia and Brazil.
Hyundai predicted improved earnings in the third quarter, but there have been concerns about a possible strike by its militant labor union which threatened to down tools unless the company agrees on more wages and benefits. Union workers at its sister company Kia Motors have also voted to stage a walkout.
reporter
Lim Chang-won
cwlim34@ajunews.com
