Hyundai Motor's net tripled in 2021
Hyundai Motor's net tripled last year despite a global shortage of auto chips and electric motor components.
The company reported a 2021 net profit of 5.7 trillion won ($4.8 billion) Tuesday, a whopping 195.8 percent jump from a year earlier.
Robust sales of it top-of-the-line Genesis vehicles and SUVs, as well as electric vehicles (EVs), helped boost the bottom line, Seo Gang-hyun, executive vice president of finance and accounting, said in an online conference call Tuesday.
But the good results fell considerably short of a market consensus compiled by FnGuide, which was a net of 6.6 trillion won.
Revenues came in at an all-time high of 117.6 trillion won, up 13.1 percent on year. Operating profit rose 178.9 percent to 6.7 trillion won, the highest annual figure since 2014.
Total global vehicle sales rose 3.9 percent on year to 3.9 million units, but fell a bit short of the company's own target, which was 4 million units. SUVs accounted for 47.3 percent, up 4.1 percentage points on year, while luxury Genesis cars accounted for 5.1 percent, up 1.7 percentage points on year.
In overseas markets, the company sold 3.16 million units, up 7 percent on year, while in Korea it sold 726,868, down 7.7 percent on year.
The company said it could have performed even better if not for the “lingering shortage of auto chips and electric motor components.”
Its fourth quarter net profit came to 701.4 billion won, down 40.7 percent. The market consensus from FnGuide was 1.5 trillion won.
Revenues stood at 31.03 trillion won in the quarter, 6.1 percent higher than a year earlier, and operating profit was 1.53 trillion won, a 22 percent year-on-year increase.
The number of cars sold in the fourth quarter totaled 960,639, down 15.7 percent compared to the same period last year. Domestic sales dropped 8.9 percent while overseas sales fell 17.2 percent.
“Due to the prolonged shortage of auto chips globally, we are having a hard time maintaining inventory in major global markets,” said Seo. “The shortage issue has been showing some improvements since December, but will affect us until at least the first quarter.”
Normalization of component supplies should come in the second quarter, Seo added, which would help the company supply more cars to the market.
Hyundai Motor hopes to sell some 4.32 million cars globally this year, including 3.6 million overseas.
It aims to sell 220,000 EVs, which would be a 56.3 percent increase from the previous year. Hyundai Motor is planning to strengthen its EV lineup this year, launching the all-electric Ioniq 6 in the second half.
BY SARAH CHEA [firstname.lastname@example.org]