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Hyundai Motor 2Q Net Profit Misses Market Expectations — Earnings Review

By Kwanwoo Jun

 

Hyundai Motor Co. Ltd. (005380.SE) reported its second-quarter results on Monday. Here's what you need to know:

 

NET PROFIT: The South Korea-based auto maker posted second-quarter net profit of 999.30 billion Korean won ($848.9 million), up 23% from KRW810.73 billion a year earlier. A FactSet consensus expected the company to report net profit of KRW1.05 trillion.

 

REVENUE: Revenue rose 9.1% to KRW26.97 trillion, below the FactSet consensus of KRW26.37 trillion.

 

WHAT WE WATCHED:

--NEW MODELS: Hyundai Motor says the brisk sales of its sports-utility-vehicle models, notably the newly-launched Palisade, are a key driving force for its quarterly earnings.

--EXCHANGE RATE: The company said the weaker Korean currency contributed to the second-quarter net profit as it boosts Korean exports and lifts the value of repatriated profit.

--NEW MARKETS: Hyundai Motor says solid sales at home and in the U.S. offset sluggish sales in China, and it plans to expand to other emerging markets such as India and Russia.

 

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

 

(END) Dow Jones Newswires

July 22, 2019 04:29 ET (08:29 GMT)

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