Hyundai Q1 up 28% on currency, sales; misses forecast

Hyundai Q1 up 28% on currency, sales; misses forecast
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First Published: Thu, Apr 24 2008. 10 57 AM IST
Updated: Thu, Apr 24 2008. 10 57 AM IST
By Reuters
Seoul: Hyundai Motor Co on 24 April posted a 28% rise in quarterly net profit but the result missed forecasts by a wide margin as rising raw material prices offset higher sales fuelled by a weaker won.
South Korea’s top auto maker with affiliate Kia Motors Corp is the world’s No.6 auto maker by sales volume, posted a first quarter net profit of 392.7 billion won ($395.8 million), widely missing a 559.2 billion won forecast by 10 analysts in a Reuters poll.
That compares with a 307.4 billion won net profit a year ago and a 338 billion won net profit in the fourth quarter of 2007.
A softer won and new factories in China and India are expected to lift Hyundai’s earnings this year, although higher oil and raw materials prices may hurt, analysts said.
Demand for more upmarket models such as the new Genesis sedan is also likely to bolster overall sales, especially in the higher-margin domestic market, of which Hyundai controls half.
Reflecting the optimism, shares in Hyundai, valued at around $18.4 billion, rose some 10% during the January-March period, easily outperforming a 10% fall in the broader market ($1=992.2 Won)
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First Published: Thu, Apr 24 2008. 10 57 AM IST