Hyundai’s quarterly profit rises as favorable exchange rates offset lower sales
Net profit soared to 1.6 trillion won ($1.3 billion) in January-March. Analysts had expected a profit of 1.4 trillion won, according to Refinitiv SmartEstimate.
“Robust sales of luxury SUV and Genesis models, declining incentives and a favorable currency environment contributed to higher revenues…despite the slowdown in sales volume,” Hyundai said in a statement. A declaration.
The South Korean won weakened nearly 7% against the US dollar over the period, which boosted the value of overseas earnings.
Hyundai, which suspended operations at its St. Petersburg plant in Russia on March 1 and only sells remaining inventory in the country, said it was seeking to minimize costs by cutting incentive and marketing expenses .
“We will consider delaying planned investment executions this year and new car launches in Russia to improve the profitability of our operations in Russia,” Executive Vice President Seo Gang Hyun said on a conference call.
Hyundai and its subsidiary Kia together hold the second largest share of the Russian market after the Renault group with its subsidiary AvtoVAZ. Hyundai’s Russian sales represent around 5% of its overall sales.
Hyundai has not decided when to resume operations. Currently, no major automaker has announced a complete withdrawal from the Russian market.