Hyundai Motor reports drop in quarterly operating profit on warranty costs

By Kim Dong-young Posted : October 24, 2024, 15:23 Updated : October 24, 2024, 15:23
This photo shows Hyundai Motor's Grand Santa Fe SUV model. Courtesy of Hyundai Motor
SEOUL, October 24 (AJP) - SEOUL, October 24 (AJP) - South Korea's largest automaker Hyundai Motor reported a 6.5 percent decline in third-quarter operating profit to 3.58 trillion won (US$2.59 billion), falling short of market expectations due to warranty-related provisions in the United States.

Revenue rose 4.7 percent to 42.93 trillion won, marking the highest third-quarter sales in the company's history, despite a 3.2 percent decline in global sales volume to 1.01 million vehicles.

Net profit fell 3 percent to 3.21 trillion won while operating profit margin stood at 8.3 percent.

The company said the profit decrease was primarily attributed to about 320 billion won in provisions set aside for extended warranty coverage for its Grand Santa Fe SUV model in the U.S.

Without this one-time cost, the company said its operating profit would have met market consensus of 3.83 trillion won.
Kim Dong-young

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