Key Takeaways:
- Hyundai Motor Q2 operating profit fell 21% to 2.9 trillion won, missing consensus.
- Revenue rose 2% to 49.2 trillion won, supported by a weaker won.
- The automaker warned of persistent macroeconomic uncertainty and tougher competition.
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Hyundai Motor Q2 profit falls 21% to $1.98B, missing estimates
Hyundai Motor reported a 21% drop in second-quarter operating profit to 2.9 trillion won, missing analyst estimates.
"Macroeconomic uncertainty will persist and competition in the industry will be tougher," Hyundai Motor said in its earnings release.
Revenue rose 2% from a year earlier to 49.2 trillion won. Analysts surveyed by LSEG had expected operating profit of 3.2 trillion won, meaning the automaker missed by about 300 billion won. The weaker won provided some support, but weaker vehicle sales, production disruptions and higher costs weighed on results.
Shares of Hyundai Motor rose 2% after the announcement. The weak performance shows wider challenges facing the auto industry as carmakers contend with rising energy and raw material costs as well as supply chain disruptions linked to U.S. tariffs and conflict in the Middle East.
Hyundai, which together with affiliate Kia Corp is the world's third-biggest automaking group by sales, posted operating profit of 2.9 trillion won ($1.98 billion) for the April-June period, compared with 3.6 trillion won a year earlier. The LSEG SmartEstimate, weighted toward analysts who are more consistently accurate, stood at 3.2 trillion won. The company did not disclose vehicle delivery numbers or earnings per share.
The earnings miss signals that cost pressures and demand headwinds are intensifying for global automakers. Investors will watch Hyundai's second-half delivery data and any updates on its EV production plans for signs of a recovery.
This article is for informational purposes only and does not constitute investment advice.
