Hyundai Motor second quarter profit surges

Seoul, July 22, (dpa-AFX/GNA) - Hyundai Motor Co. reported that its second-quarter net profit, including non-controlling interest, surged to 1.

98 trillion Korean won (1.7 billion dollars), from 377.3 billion won in the same period of last year.

Operating profit for the period rose to 1.89 trillion won from 590.3 billion won in the second quarter of 2020, when the Covid-19 pandemic stifled profitability.

Revenue increased 38.7 per cent year-over-year to 30.33 trillion won.

The company sold about 1.03 million units around the globe in the April-June period, a 46.5 per cent increase from a year earlier.

Sales in markets outside of Korea increased by 73.6 per cent to 830,667 units, led by the recovery of automotive demand in most markets around the world. Sales in Korea decreased 11 per cent to 200,682 units.

Hyundai Motor's board approved a plan to pay an interim dividend of 1,000 won per share-the same level as in 2019.
Hyundai Motor expects that on-year sales growth might slow down in the rest of this year amid adverse business conditions caused by the Covid-19 pandemic resurgence, as well as the unstable supply of semiconductor chips, raw material price fluctuations, and unfavorable exchange rates.

However, the company will continue to proactively cope with these issues.

Regarding the global chip shortage, Hyundai Motor said it expects the situation to gradually improve in the second half of the year. The company plans to bolster its component inventory with sufficient orders for a year, secure additional supplies and strengthen cooperation with various semiconductor partners.

Hyundai Motor will also continue to enhance its product mix with more SUVs and luxury models, while improving profitability despite the tough business environment.