Hyundai Motor reaps record $3.3 billion profit in Q2

Hyundai Motor logo at a car dealership in Seoul [YONHAP]

Hyundai Motor posted another all-time high operating profit of 4.24 trillion won ($3.32 billion) for the April-June period, up 42.2 percent on year, driven by ramped-up production, strong sales of high-margin vehicles, and a weak local currency.

The operating figure beat the analyst forecast of 3.89 trillion won compiled by market tracker FnGuide.

With the latest earnings report, the carmaker netted its highest operating profit for a third consecutive quarter, setting a new record.

Net profit came in at 3.35 trillion won, up 8.5 percent from the same period last year and above market expectations.

Revenue rose 17.4 percent to 42.25 trillion won, also surpassing market expectations.

“The operating margin rate came in at 10 percent in the second quarter, because of the increase in sale volumes boosted by strong demand, improved profit margins thanks to surging sales of high-margin models such as SUVs, Genesis and EVs, and the favorable currency situation,” Seo Gang-hyun, the company's executive vice president of finance and accounting, said in a conference call Wednesday.

“Despite a range of uncertainties in the macro-economic situation and concerns about global car demand, we are seeing a steady growth in major markets including the United States, European countries and India,” Seo added.

Hyundai sold a total of 1.06 million vehicles in global markets in the first quarter, up 8.5 percent on year.

A total of 205,503 vehicles were sold in the domestic market, up 12.7 percent on year, with the latest Kona Electric SUV rolled out in April and the Grandeur sedan pushing up sales.

The increase in the production volume driven by improved auto chip supply, strong sales of hybrid cars and the global roll-out of the Ioniq 6 boosted overseas sales to 854,210, up 7.6 percent on year.

Hyundai Motor is likely to remain the highest-earning company among those listed in the financial market in Korea, surpassing Samsung’s operating profit yet again after the carmaker first outran Samsung in the previous quarter.

Hyundai Motor also declared a quarterly dividend of 1,500 won per share for the second quarter Wednesday. Hyundai announced a new shareholder return policy in April to pay dividends every quarter, with the company previously distributing dividends twice a year.

Kia will report its second-quarter earnings on Thursday. Its operating profit is estimated at 3.12 trillion won, up 39.8 percent on year, and net profit at 2.48 trillion won, up 31.6 percent on year, according to FnGuide.

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