Hyundai, Kia Likely To Post Operating Profit Of $5.7 Billion In Q2

7/21/2024 1:15:18 AM

(MENAFN- IANS) Seoul, July 21 (IANS) Hyundai Motor and its affiliate Kia are set to post an operating profit exceeding 8 trillion won ($5.7 billion) in the second quarter on improved product mix and production adjustments, a survey showed on Sunday.

Hyundai and Kia are estimated to report an operating profit of 4.28 trillion won and 3.76 trillion won, respectively, in the three months ended in June, according to a Yonhap Infomax survey of local brokerages.

Hyundai and Kia's second-quarter operating income likely rose 1 per cent and 11 per cent, respectively, from the same period of last year, the survey showed.

The carmakers' timely response to the electric vehicle "chasm", their focus on high-end sport utility vehicles, such as the GV80, particularly in the US market, and a weak won likely helped the quarterly bottom line, analysts said.

The dollar rose to an average of 1,370.91 won in the June quarter from 1,314.68 won a year earlier, according to data from the Bank of Korea.

A weak won drives up an exporter's dollar-denominated income when converted into the local currency.

The two carmakers began to strengthen their gasoline hybrid model lineup early this year as the global EV market entered a stagnation phase, known as the chasm, which occurred before the widespread adoption of EVs. Hyundai's sales are forecast to rise 4 per cent on-year to 43.99 trillion won, while Kia's are projected to increase 5.6 per cent to 27.7 trillion won during the same period.

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