Hyundai Motor, ‘earnings surprise’ despite bad news about semiconductors and Russia… Operating profit in the first quarter was 16.4% up from the previous year
Hyundai Motor Company recorded an ‘earnings surprise’ that exceeded market expectations despite a decrease in sales in the first quarter of this year. This is a result of the high profitability of Genesis and SUVs selling well, and favorable external factors such as the exchange rate effect were reflected.
Hyundai Motor Company announced through a business performance conference call on April 25 that its consolidated sales for the first quarter of 2022 were 30.2986 trillion won, operating profit 1.928.9 trillion won, and net profit 1.777.4 trillion won. Compared to the same period of the previous year, sales and operating profit increased by 10.6% and 16.4%, far exceeding the consensus (estimated) of securities companies. FnGuide, a financial information company, estimated that Hyundai Motor’s sales in the first quarter were 29,794.8 billion won and operating profit of 1.64 trillion won, similar to the previous year.
Although performance improved, the number of car sales plummeted. In the first quarter of 2022, Hyundai Motor sold 902,945 vehicles in the global market, down 9.7% from the same period last year. In Korea, sales of 152,098 units were down 18% from the previous year. A shortage of semiconductors and a shortage of parts due to blockades in some parts of China have been hindered. Industry insiders predict that this situation will continue for some time.
Meanwhile, Hyundai Motor decided to maintain the target for this year’s consolidated sales growth rate of 13-14% compared to the previous year and operating profit margin of 5.5-6.5% in the consolidated division, as presented in the ‘2022 Annual Performance Guidance’ announced in January.
An official from Hyundai Motor Company said, “Although a difficult business environment is expected due to the full-fledged impact of rising raw material prices and geopolitical risks, we will do our best to achieve the guidance announced at the beginning of the year.”
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