Hyundai's Q3 Net Profit Slumps on Strikes, Weak Sales

38% drop

South Korea's top carmaker Hyundai Motor on Oct. 23 announced a 38% fall in third-quarter net profit because of weaker global demand and strikes.

Net profit was 264.7 billion won (US$186 million) in the three months ended September 30 compared with 425.4 billion won in the same period last year. Operating profit was 104.5 billion won compared to 356.2 billion a year earlier. Sales fell 15% to 6.05 trillion won from 7.08 trillion.

The company blamed the fall in profit on a series of work stoppages that extended over two months, but said it expects sales to recover in the fourth quarter as operations normalize.

Hyundai said it would boost the supply of small- and medium-sized cars in response to rising demand for them. It would also diversify its line-up to counter the industry-wide fall in overall demand.

Hyundai, with its affiliate Kia Motors, is the world's fifth largest automotive group.

Copyright Agence France-Presse, 2008

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