Hyundai Motor Posts Record Quarterly Profit

Net profits up 48% from last year

South Korea's largest automaker Hyundai Motor on July 23 reported its highest-ever quarterly net profit despite the global economic downturn.

Hyundai said net profit in April-June was 811.8 billion won (US$648.4 million), a 48% rise on 546.9 billion won for the same period in 2008.

Operating profit fell 0.8% year-on-year to 657.3 billion won from 662.5 billion, due to higher marketing costs and lower exports due to the global recession.

Declining exports also dragged sales down 11% to 8.08 trillion won from 9.107 trillion.

The record net figure was aided by shareholding gains from affiliates in China and India and tax incentives that boosted sales at home.

Hyundai's domestic sales rose 15% year-on-year to 63,718 in May and 55% to 74,685 in June thanks to the tax breaks.

The company, which had 51% of the domestic automobile market in the first half, is targeting 52% in the second half by focusing on sales of new models such as the midsize YF Sonata sedan.

Copyright Agence France-Presse, 2009

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