By Jane Han
Staff Reporter
South Korea's auto giant Hyundai Motor beat expectations, posting a record-high profit in the third quarter driven by a weaker won and strong sales in the U.S. and China.
Net profit for the three months ended Sept. 30 soared to a record 979.1 billion ($826.2 million), up sharply from a profit of 264.7 billion won a year earlier, the company said in a regulatory filing, Thursday.
Sales climbed nearly 34 percent year-on-year to 8.09 trillion won in the same period, while operating profit increased more than five times to 586.8 billion won.
``Local and global auto markets are slowly clawing its way out of the steep downturn backed by various government-led support measures,'' the car maker said in a statement. ``Despite the uncertainties, Hyundai is expanding its presence in both the developed and emerging markets.''
Officials at the world's sixth-largest auto firm said incentive programs for new-car buyers by governments worldwide helped prop up sales right through one of the history's worst economic slumps.
In the July-September period, the company said its global market share rose to 5.5 percent from 5 percent in the first half. Domestic sales jumped 44 percent, while overseas sales gained 33 percent.
The car maker sold 2.2 million vehicles globally so far this year, but aims to reach the 3-million-mark by the year-end.
``The introduction of new cars and signs of economic recovery are going to contribute to our results,'' Chung Tae-hwan, Hyundai's chief financial officer, told reporters after announcing the company's quarterly earnings.
He forecast that global demand for automobiles will rise 5 percent next year to about 60 million vehicles.
Hyundai's third-quarter results beat analysts' earlier expectations. Seoul-based market research firm FnGuide had forecast a net profit of just above 500 billion won. The company was expected to lose its momentum as the Korean currency continues to gain against the U.S. dollar and other major currencies.
The won strengthened 8.1 percent against the greenback in the third quarter alone.
Despite the strong performance, analysts said the continuously rising won and decreasing stimulus packages may bog down Hyundai's performance starting next year.
``It's too early to be concerned about these factors this year,'' said Ahn Soo-woong, an analyst at LIG Investment & Securities.
The new-models effect is expected to sustain rising sales at home and overseas through the fourth quarter, according to analysts.
jhan@koreatimes.co.kr
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