Apr. 25, 2013 - Hyundai Motor Company today announced 2013 first-quarter earning results. Despite various unfavorable internal and external factors, its continued sales growth overseas led to a 6.0 percent increase in sales revenue, compared to the same period last year.
For the first three months of 2013, sales revenue rose 6.0 percent to 21.37 trillion won (auto: 17.66 trillion / finance and others: 3.70 trillion) from a year earlier, thanks to strong sales outside Korea and the addition of a subsidiary, Hyundai KEFICO. However, operating profit and net profit fell 10.7 percent and 14.9 percent to 1.87 trillion won and 2.88 trillion won (including non-controlling interest), respectively, mainly because of increased costs due to a weaker currency and increased one-time provisions.
Hyundai sold 1,171,804 units globally (Korea: 153,728 / overseas: 1,018,076) during the first quarter this year, a 9.2 percent increase from a year earlier. While its sales in Korea fell 0.7 percent from the same period a year ago, its overseas sales rose 10.9 percent to 1,018,076 units, offsetting the decline in the domestic market.
Hyundai’s production volume at its Korean plants declined during the first quarter due to some production stoppages on weekends, which increased fixed costs. However, once this issue is resolved, coupled together with a more stable outlook on currency exchange rates and Hyundai’s ongoing robust sales in overseas markets such as China and Brazil, the company’s earnings are forecast to improve going forward.
Hyundai forecasts that major auto markets, including some emerging markets, will keep posting slower growth amid fiercer competition and uncertain business environments. Nevertheless, Hyundai aims to strengthen its fundamentals through qualitative growth and quality management. To do so, Hyundai plans to launch local strategic models, reinforce sales and service networks, as well as carry out aggressive marketing activities.
Such efforts have already been in progress, posting significant results. The HB20, which rolled off Hyundai’s new Brazilian plant since October last year, won five major local awards including the 2013 Brazilian Car of the Year. By strengthening its dealer network, Hyundai’s market shares in European and Indian markets are on the rise. In the U.S., cumulative sales of the Elantra exceeded 2 million units since it launched in the market in 1991, due to differentiated marketing strategies based on enhanced quality.
Cautionary Statement with Respect to Forward-Looking Statements
In this release and in related comments by Hyundai Motor’s management, our use of the word “expect,” “anticipate,” “project,” “estimate,” “forecast,” “objective,” “plan,” “goal,” “outlook,” “target,” “pursue” and similar ex-pressions is intended to identify forward looking statements.
The financial data discussed herein are presented on a preliminary basis before the audit from Independent Auditor; final data will be included in HMC’s Independent auditors report. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors.
Such factors include, among others, the following : change in economic conditions, currency exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the corporation’s new products; significant changes in the competitive environment; changes in laws, egulations and tax rates; and the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and time planned by management. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.