Hyundai Motor's net rises 55% in second quarter

Ioniq 6s are displayed at the Busan International Motor Show [HYUNDAI MOTOR]

Hyundai Motor saw net profit rise over 55 percent in the second quarter thanks to strong sales in the U.S. and Europe.

Net profit for the April-June period was 3.08 trillion won ($2.35 billion), up 55.6 percent from last year’s 1.98 trillion won and far surpassing a market expectation of 2.03 trillion won compiled by market tracker FnGuide.

The carmaker reported record revenues of 36.0 trillion won, up 18.7 percent on year, exceeding the previous record of 31.3 trillion won in the fourth quarter of 2021.

Operating profit came in at 2.98 trillion won, up 58.0 percent on year and also a record. The previous record was the second quarter of 2014's 2.87 trillion won.

Revenues surpassed market expectations of 33.15 trillion won operating profit exceeded an expectation of 2.28 trillion won.

The number of cars sold decreased by 5.3 percent on year in the April-June period, but robust sales of high-end Genesis vehicles, SUVs and electric vehicles (EVs) in the U.S. and Europe drove profits.

The profit margin per unit was significantly improved.

The strong performance came despite supply disruptions caused by an auto chip shortage and Covid-19 lockdowns in China.

“The level of inventory in major markets is very low,” said a Hyundai Motor spokesperson. “The chip shortage is getting better, but we expect uncertainties in market condition to continue in the future due to geopolitical risks and a resurgence in Covid-19 cases.”

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]