Hyundai shows strong Q4 profit growth of 31%, targets revenue growth of 4-5% in 2567.
Hyundai shows Q4 profit growth of 31%, but still below analysts' expectations. The company targets revenue growth of 4-5% in 2567.
On January 25, 2024, CNBC reported that South Korea's Hyundai Motor Co., the world's third-largest automaker when combined with its subsidiary Kia Corp., reported a 31% increase in fourth-quarter profits.
which missed analysts' forecasts Due to the unfavorable exchange rate This includes one-time costs related to the sale of the Russian plant in December.
Hyundai Motor reported a net profit of 2.2 trillion won, or approximately $1.65 billion, for the October-December period, compared to 1.7 trillion won in the previous year. This surpasses the average forecast of 2.9 trillion won by LSEG SmartEstimate, which is weighted towards estimates from analysts with more consistent accuracy.
In December, Hyundai Motor said it would suffer a loss of 2.87 billion won, or about $219.2 million, from the sale of a factory in Russia. Operations have been suspended since March 2565.
Hyundai Motor targets revenue growth of 4.0-5.0% in 2567. Auto sales in North America are expected to increase 4.9%, but auto sales in China and Europe are expected to decline 3.7% and 0.6%, respectively. Operating profit margin is expected to be between 8.0% and 9.0%, in line with last year.
“Hyundai Motor expects the business environment to remain difficult. This is due to macro uncertainties centered on emerging markets. and the slowdown of the real economy.”
Analysts noted that Like other automakers, Hyundai Motor is struggling with slowing growth due to a difficult economic environment. This includes high interest rates and inflation that have put cars out of reach for some buyers.
"It appears that the demand for cars , which was constrained by limited production, has disappeared as high interest rates have eroded the willingness of car buyers to purchase. "
He added that Hyundai Motor is likely to manage vehicle inventory levels more stringently than in previous years. This is because pent-up demand disappears and excess inventory will affect profitability.
Hyundai Motor shares rose 2% after reporting earnings. This outperformed benchmark Kospi's 0.1% gain.
Reference: cnbc.com
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