This file photo provided by Hyundai Motor shows a new Santa Fe SUV outfitted with camping equipment. (PHOTO NOT FOR SALE) (Yonhap)
SEOUL, Jan. 25 (Korea Bizwire) – South Korea’s Hyundai Motor Co. on Thursday set a 4 to 5 percent growth target for sales this year, as it posted a 29 percent on-year jump in the fourth quarter on high-end models.
Net profit for the three months ended Dec. 31 rose to 2.2 trillion won (US$1.6 billion) from 1.709 trillion won a year earlier, the company said in a statement.
“The bottom line got a boost from increased sales of value-added models in major markets such as the United States and Europe as well as improved product mix and productivity despite growing concerns over an economic slowdown,” the statement said.
Operating profit climbed 0.2 percent to 3.4 trillion won in the December quarter from 3.4 trillion won a year ago. Sales were up 8.3 percent to 41.6 trillion won from 38.4 trillion won during the cited period.
Looking ahead, the company expected the overall business environment will remain unfriendly this year due to macroeconomic uncertainties involving emerging markets, volatile foreign exchange rates, and increased sales-related costs.
But it is targeting to sell 4.24 million vehicles this year, up from 4.21 million units sold last year, by focusing on SUVs, battery-powered models, and high-end models under its independent Genesis brand.
Last year’s most popular vehicle model in South Korea was Hyundai’s Grandeur sedan, selling 113,062 units to become the sole model to surpass 100,000 units in 2023.
For the whole of 2023, net income jumped 54 percent to 12.2 trillion won from the previous year’s 7.9 trillion won despite higher interest rates and inflation.
Operating profit also surged 54 percent to 15.1 trillion won last year from 9.824 trillion won a year ago. Sales rose 14 percent to 162.6 trillion won from 142.15 trillion won despite higher interest rates and inflation.
The maker of Santa Fe SUVs and Sonata sedans has budgeted 12.4 trillion won in capital expenditure this year, including 5.6 trillion won for facility investments and 4.9 trillion won for research and development.
It aims for a “conservative” operating profit margin of 8-9 percent this year, compared to 9.3 percent achieved last year.
To enhance shareholder value, Hyundai plans to deliver 11,400 won per share in a year-end dividend for 2023, which is up 63 percent from a year ago.
On Thursday, Hyundai shares rose 2 percent to 188,700 won, outperforming the broader KOSPI’s 0.03 percent gain.
(Yonhap)
