Filed under:
China,
Hyundai,
Earnings/Financials
Slow US growth is hampering profits at
Hyundai. In its first quarter financial statement, the Korean automaker reported a profit of 1.93 trillion won ($1.86 billion). According to
Reuters, this is less than analysts' expectations and nearly the same as last year.
According to the report, US sales fell by 3 percent in Q1 2014. To make matters worse, the high value of the South Korean currency caused lower profits on models exported from there. On the bright side, Hyundai's Chinese sales rose by 9 percent, according to
Reuters. It's also working on building a fourth factory there.
The company has had a rough time in the US throughout the quarter. John Krafcik, the CEO of Hyundai of America,
stepped down on January 1, and the
company was already predicting slow growth in sales for 2014.
Falling quality scores for the
Sonata and
Elantra aren't helping matters either. However, there may be hope on the way. The second-generation
Genesis Sedan was
introduced to the US in Detroit, and the redesigned Sonata was recently
shown in New York. Successful launches of these important models could prove crucial.
Hyundai missing Q1 earnings targets blamed on slow US sales originally appeared on
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24-04-2014, 11:10 PM
