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(LEAD) Hyundai Motor Q3 net jumps 51 pct on weak won, SUVs

All News 15:28 October 24, 2019

(ATTN: ADDS executive's comment in 3rd para, details and background in paras 4-7, 9-10)

SEOUL, Oct. 24 (Yonhap) -- Hyundai Motor Co. said Thursday its third-quarter net profit jumped 51 percent from a year earlier on a weak won and robust sales of sport utility vehicles.

Net profit for the three months that ended Sept. 30 rose to 460.5 billion won (US$393 million) from 306 billion won a year ago, also helped by a strike-free wage deal for the year, the company said in a statement.

"Robust sales of the Palisade SUV in the United States buoyed the quarterly earnings, but one-off costs worth over 600 billion won involving a U.S. engine lawsuit settlement limited the net result," Hyundai Motor Executive Vice President Choi Byung-chul said on a conference call with analysts after the release of the quarterly results.

Hyundai Motor recently reached a settlement with car owners regarding the suit over its Theta II gasoline direct injection (GDi) engine for problems such as engine stall and non-collision fires in the United States.

The won's weakness against the dollar continued to give a boost to Hyundai Motor's profits.

The won fell to an average of 1,193.24 against the greenback in the third quarter, from 1,121.59 a year ago, according to the Bank of Korea. A weak won makes South Korean exports more price competitive overseas and lifts the value of repatriated profits.

Looking ahead, Hyundai Motor will focus on boosting sales of the Palisade SUV, the upgraded Grandeur sedan and the GV80, the first SUV model under its independent Genesis brand, in the fourth quarter to achieve an operating profit ratio of 4 percent for the year, Choi said.

Operating profit climbed 31 percent to 378.5 billion won in the third quarter from 288.9 billion won a year ago. Sales were up 10 percent to 26.97 trillion won from 24.43 trillion won during the same period.

From January to September, net profit rose 31 percent to 2.41 trillion won from 1.85 trillion won in the year-ago period. Operating profit gained 27 percent on-year to 2.44 trillion won in the first nine months from 1.92 trillion won. Sales were up 8.9 percent to 77.92 trillion won from 71.58 trillion won.

Hyundai sold a total of 3.23 million vehicles in the first nine months, achieving 70 percent of its annual sales target of 4.68 million units this year.

This file photo provided by Hyundai Motor shows its Palisade SUV. (PHOTO NOT FOR SALE) (Yonhap)

kyongae.choi@yna.co.kr
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