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Posts Tagged ‘hyundai earnings’

Hyundai Defies Euro Downturn; Pushes Up Profits

Strong demand from buyers on a budget helps deliver big surge in earnings.

by on Jul.26, 2012

The Hyundai i30 helped the Korean maker counter the overall downturn of the European car market.

You’d have a hard time telling there are any problems in Europe if you’re only looking at Hyundai’s sales numbers.  Despite the Continent’s economic crisis and the sharp downturn in overall sales, demand for the Korean makers products jumped during the second quarter – driving a 10% increase in the maker’s overall earnings.

Hyundai is one of the few brands that has proven relatively immune to the European crisis that has nations like Greece and Spain on life support while even Germany’s auto market is feeling the economic pinch.  The Korean carmaker appears to be benefiting from its reputation for bargain pricing even as it launches a wave of well-received new products, such as the i40 sedan and ix35 crossover.

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Hyundai’s strong performance comes in sharp contrast to most of the rest of the industry. Ford reported a 57% downturn in Q2 profits, largely the result of European losses, while General Motors is expected to post a major loss in Europe next week. Volkswagen saw earnings rise for the quarter, but largely due to foreign sales with senior executives admitting the situation on the Continent is worsening.


Hyundai, VW Latest to Report Big Earnings Gains

But both makers issue warnings about the future.

by on Jul.28, 2011

Products like the new Golf helped Volkswagen more than triple second-quarter earnings.

Despite the slow global recovery, a weak U.S. economy, rising raw materials costs and other “headwinds,” automakers around the globe have been delivering some solid earnings for the year’s second quarter – though not always enough to keep investors happy.

That’s what Volkswagen found out today as it reported a tripling of its second-quarter earnings, only to have investors sell off its stock due to concerns about the challenges the company faces in the months ahead.

The market gave a warmer response, however, to Hyundai Motor, the Korean carmaker beating analysts’ forecasts with a 37% rise in quarterly profits driven by record vehicle sales and, in particular, gains in the critical U.S. market.  But Hyundai also had some warnings for analysts and investors.

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Hyundai appears to have done the best job of making gains at the expense of its Japanese rivals – who were hammered by a March 11 earthquake and tsunami that nearly shut that country’s auto industry down.  But Hyundai is also riding a wave of new products, from the subcompact Accent to the big Equus, which has proven a bigger success than even company executives had forecast.


Hyundai Earnings Surge 46%

Korean maker's sales surge past Honda.

by on Apr.28, 2011

Coming at you. New products, like the big Equus sedan, are helping Hyundai drive up earnings.

It was a great first quarter for Hyundai, the upstart Korean carmaker that has been much of the auto industry’s established order a scare.  The maker reports it earned $1.75 billion for the January to March period, a 46% jump.

With demand up everywhere from Berlin to Beijing – and Boston in- between — Hyundai also recorded global sales of 922,000 for the quarter pushing it in front of Japan’s number three maker, Honda.  Considering the huge losses in production Honda and the rest of the Japanese have suffered in the wake of that nation’s March 11 disaster, Hyundai is likely to maintain that lead, analysts suggest, for at least another quarter, if not longer.

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Hyundai’s net, 1.88 trillion in Korean won, was up from 1.28 trillion won a year ago.  First-quarter sales and revenues totaled 18.23 trillion won, a 21% increase.

The Korean company has been on an aggressive growth curve fueled by the expansion of its line-up into a variety of new segments, and from the addition of overseas assembly plants, such as the facility it opened in Alabama, two years ago.