SEOUL — Hyundai Motor Co. stated challenges are anticipated to persist within the U.S. market, the place its gross sales have already been battered by a scarcity of crossovers/SUVs, after earlier reporting its worst annual earnings in seven years.
The South Korean automaker, which has not seen its yearly earnings rise for 5 years now, is battling a whole lot of headwinds — a protracted product cycle, heavy reliance on sedan gross sales in China and the U.S. in addition to a firmer native forex that’s consuming into its earnings repatriated from abroad.
The corporate’s annual internet revenue sank 25 p.c to four trillion gained ($three.eight billion).
Fourth-quarter working revenue fell 24 p.c to 775 billion gained ($731 million), the corporate stated in a press release Thursday. That compares with the 1.12 trillion-won common of 22 analyst estimates compiled by Bloomberg.
And any restoration will possible be sluggish as indicated by Hyundai CFO Choi Byung-chul’s remark that “the U.S. gross sales circumstances are anticipated to be difficult, because of persistent weak spot in demand and rising competitors”.
In america, Hyundai’s third-biggest market after China and South Korea, stock ranges rose to 4 months on the finish of final 12 months.
Hyundai and affiliate Kia Motors, collectively the world’s No. 5 automaker, missed their world gross sales goal for a 3rd 12 months in 2017 as enterprise in China additionally got here below stress from a chill between Beijing and Seoul over South Korea’s deployment of a U.S. anti-missile system.
Learn extra >