SEOUL, July 21 (Korea Bizwire) — South Korea’s Hyundai Motor Co. said Thursday its second-quarter net profit jumped 56 percent from a year earlier on improved product mix and a weak won.
Net profit for the three months ended in June rose to 3.08 trillion won (US$2.34 billion) from 1.98 trillion won during the same period of last year, the company said in a statement.
The second-quarter bottom line was buoyed by increased sales of Hyundai’s independent Genesis brand models, decreased incentives and the won’s weakness against the dollar, the statement said.
The dollar rose to an average of 1,259.57 won in the second quarter from 1,121.23 won a year ago, according to the Bank of Korea.
Such factors helped offset the carmaker’s production losses derived from a prolonged chip shortage and disruptions of parts supplies, Hyundai said.
In the second half, “higher raw materials prices resulting from the Russia-Ukraine war, a resurgence of the COVID-19 pandemic and inflation amid rising interest rates will remain uncertainties for carmakers,” Hyundai Senior Vice President Koo Za-yong said in a conference call on the quarterly results.
Hyundai will focus on boosting sales of SUVs and electric vehicles in global markets to minimize the uncertainties facing the company, he said.
Hyundai plans to launch its second dedicated EV model IONIQ 6 in the domestic market in September and the third IONIQ 7 SUV model in 2024, following the IONIQ 5′s launch in April last year.
The products are part of Hyundai Motor’s broader plan to double its EV lineup to 13 by 2030 from the current six models — three from Hyundai and three from the luxury Genesis brand.
The three Hyundai models are the KONA EV, IONIQ 5 and IONIQ 6, while the three Genesis models are the GV60 SUV, electrified GV70 SUV and electrified G80 sedan.
Hyundai Motor Group said in May its three affiliates — Hyundai Motor, Kia Corp. and parts maker Hyundai Mobis Co. — will invest a combined 63 trillion won in plants, electrification, autonomous driving and other next-generation technologies by 2025.
In the same month, the group announced it will invest $10.54 billion to build a dedicated EV plant in Georgia, and develop robotics and self-driving technologies in the U.S.
Last month, Hyundai said it will build a 2 trillion-won domestic EV plant in its main Ulsan plant, 414 kilometers southeast of Seoul, with an aim to start production in 2025.
Analysts said the strike-free wage deal between the company and its union for the fourth straight year through 2022 and planned EV plants will lift some of the company’s risk factors.
Operating profit soared 58 percent to 2.98 trillion won in the June quarter from 1.89 trillion won a year ago. Sales were up 19 percent to 35.99 trillion won from 30.33 trillion won.
From January to June, net profit climbed 39 percent to 4.86 trillion won from 3.50 trillion won in the year-ago period.
Operating profit also jumped 39 percent to 4.91 trillion won in the first six months from 3.54 trillion won. Sales gained 15 percent to 66.29 trillion won from 57.72 trillion won.
In the six-month period, Hyundai sold a total of 1.88 million vehicles, achieving 43 percent of its sales target of 4.34 million units for the year.