Economy

Hyundai Mobis Q2 net drops 43 pct on China woes

Hyundai Mobis Q2 net drops 43 pct on China woes”

Hyundai Motor said Wednesday its quarterly profit was halved to its lowest level since 2010 as its auto sales in China and the USA plunged as the South Korean automaker paid dearly for lagging in its SUV lineup.

Net income for the April-June period was 816.9 billion won ($728.8 million), down 51 percent from 1.7 trillion won ($1.5 billion) a year earlier, Hyundai Motor said.

In the second quarter, the parts manufacturer's main buyers - Hyundai Motor Co. and Kia Motors Corp. - suffered sharp declines due to political tensions between Seoul and Beijing over the deployment of an advanced United States anti-missile system on South Korean soil. China has objected to the move and has taken retaliatory measures in the form of economic restrictions. Sales from automotive parts supply for after sales services were up 2.2 percent to 3.38 trillion won, helped by an increase in the number of cars on the roads sold by its sister companies Hyundai Motor and Kia Motors around the world.

Operating profit fell 19 percent to 350.9 billion won in the second quarter from 432.2 billion won a year ago. The company said its improved profitability through more efficient management in logistics, inventory and cost in this business sector contributed to offsetting the overall earnings decrease. Sales rose 11 percent to 4.69 trillion won from a little under 4.23 trillion won during the same period, the statement said. Analysts had predicted a net profit of 1.4 trillion won ($1.2 billion), according to FactSet, a financial data provider.



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