Hyundai misses consensus for 2024 operating profit at $9.9B

Home > Business > Industry

print dictionary print

Hyundai misses consensus for 2024 operating profit at $9.9B

Audio report: written by reporters, read by AI


Hyundai Motor Group's headquarters in southern Seoul [HYUNDAI MOTOR GROUP]

Hyundai Motor Group's headquarters in southern Seoul [HYUNDAI MOTOR GROUP]

 
Hyundai Motor logged a consensus-missing 14.24 trillion won ($9.9 billion) in operating profit in 2024, hit hard by increased costs caused by the strong dollar, for the first year-on-year fall in four years.
 
Still, annual revenue hit a new record of 175.2 trillion won thanks to the robust sales of high-margin hybrid vehicles and boosted demand in the North American region.
 

Related Article

The Korean automaker on Thursday said it posted 14.24 trillion won in operating profit last year, down 5.9 percent on year, slightly missing the market consensus of 14.8 trillion won compiled by market tracker FnGuide.
 
Hyundai blamed “more spending on product warranties” and increased incentives for dealers for the weaker-than-expected figure.
 
The record revenue of 175.2 trillion won was a 7.7 percent on-year increase, beating the analyst estimate of 173.2 trillion won.
 
Net profit also hit a new high of 13.23 trillion won, though that fell short of the analyst prediction of 13.8 trillion won.
  
Hyundai sold a total of 4,141,959 vehicles globally, down 1.8 percent on year. However, sales of environmentally-friendly vehicles including electric vehicles and hybrid vehicles rose 8.9 percent to 757,191 units.
 
Sales in the overseas market declined 0.5 percent, while sales in the domestic market slid 7.5 percent on year.
 
For the fourth quarter, revenue rose 11.9 percent to 46.6 trillion won, while operating profit plunged 17.2 percent to 2.8 trillion won.
 
It sold 1.07 million vehicles during the October-to-December period globally, down 2.2 percent on year. Overseas sales fell 1.6 percent despite North American sales rising 4.4 percent while sales in Korea tumbled by 4.6 percent.
 
For 2025, Hyundai aims to sell a total of 4.17 million cars and achieve growth of 3 to 4 percent in sales figures while hitting an operating profit margin of up to 8 percent.
 
“We expect an uncertain 2025 locally and globally, impacted by the new U.S. administration and Europe’s stricter guidelines for cars,” said Lee Seung-jo, an executive vice president overseeing finance and strategies at Hyundai Motor, during a conference call on Thursday.
 
Regarding the new Donald Trump administration’s threat to impose higher tariffs and repeal EV-related subsidies, Hyundai is “responding well with our flexible production system,” Lee added.
 
Hyundai also said its self-driving robotaxi being co-developed with Waymo, an Alphabet subsidiary, will hit the market in North America in 2026.
 
Hyundai Motor shares closed at 209,000 won on Thursday, up 0.24 percent from the previous trading session.

BY SARAH CHEA [[email protected]]
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)