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Apr-29-2011Kia Motors Net Profit Jumps 91%; Optima Growth Catalyst for 2011(topic overview)
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Hyundai reported a 1.88 trillion Korean won ($1.7 billion)in January-March net profit, compared with 1.28 trillion won a year ago. Hyundai was reporting earnings on a consolidated basis to reflect earnings of its affiliates including financial operations under new accounting rules, and there were no consensus guidelines for the result. Hyundai outperformed its global peers in the last quarter thanks to popular models such as the Sonata mid-sized sedan and the Elantra compact in the United States, South Korea and other markets. The company said sales were especially good in the United States and China last quarter, rising by 28 percent and 30 percent respectively, while its overall global sales rose 10 percent from a year ago. Hyundai Motor's chief financial officer, Lee Won-hee said industry sales could to grow to 13 million units this year in the United States. He reiterated that the company had no plan to build a new plant in the United States, although it could consider such a move if the market continued to recover. [1] SEOUL, April 29 (Reuters) - Kia Motors, South Korea's No.2 automaker, looks set for another strong quarter after posting a 91 percent jump in its net profit for the January to March period, powered by strong sales of new models and problems at its Japanese rivals. South Korean carmakers Hyundai Motor and affiliate Kia, which together rank fifth in global car sales, have been little affected by Japan's quake because they use few Japanese components, and stand to gain market share, analysts said. Hyundai Motor reported a 47 percent jump in its net profit, helped by a popular line-up of new models which have been selling strongly in top markets such as China and the United States. The earnings drove its shares 7 percent higher to a record-high. [2] Kia Motors reported a 91 percent jump in quarterly net profit, driven by double-digit sales growth in the United States, China and South Korea. Kia said its new models such as the Optima sedan, Sportage R SUV and Picanto subcompact, along with its improved brand image, helped global sales jump 30 percent to 619,089 units in the first quarter from a year earlier. [2]
Hyundai Motor Company, South Korea's largest automaker, sold 919,130 units (domestic: 166,664 / overseas: 752,466) worldwide in the first quarter of 2011, up 9.2 percent from the same period a year earlier in spite of global economical and political uncertainties. Hyundai Motor posted solid earnings based on its world-class quality and strong product competitiveness: Net profit rose 46.5 percent to 1.88 trillion won (including non controlling interest) in the first quarter, from a year earlier. [3] Consolidated net profit, including earnings from overseas affiliates, reached 1.88 trillion won (1.75 billion U.S. dollars) in the first quarter, up 46.5 percent from 1.28 trillion won the previous year, the automaker said in a statement. Sales grew 21.4 percent on-year to 18.23 trillion won in the first three months of this year, with operating profit surging 45. 6 percent to 1.83 trillion won. Positive results were attributable to strong overseas sales and improved earnings from its affiliates, the company said. [4] Kia reported a 953.2 billion won ($888 million) net profit for January-March, compared with 498.5 billion won a year ago. From this year, Kia has started to report earnings on a consolidated basis to reflect earnings of its affiliates including financial operations under new accounting rules, and there were no consensus guidelines for the consolidated results. Kia's operating profit jumped 90 percent to 839.9 billion won in the first quarter from a year earlier, while its sales climbed 37 percent to 10.66 trillion won. [2]
Hyundai Motor Co.' s quarterly sales increased 21.4 percent from a year ago, while that of its affiliate Hyundai Steel rose to record levels. In a regulatory filing, Hyundai Motor revealed that its first quarter sales increased 21.4 percent compared to the same period last year to come in at 18.23 trillion won, while operating profits soared 45.6 percent over the same period to come in at more than 1.8 trillion won. [5] Sales jumped 37 percent on-year to a record high of 10.66 trillion won in the first quarter, and operating profit spiked 90 percent to 840 billion won over the cited period, the company said. [6]
The company, which currently operates two 4-million metric ton blast furnaces at the plant in Dangjin, said that sales for the period came in at a record high of 3.55 trillion won, while operating and net profits came in respectively at 309.3 billion won and 258.3 billion won. [5]
Net profit for the nation's largest automaker was 1.87 trillion won ($1.7 billion), up 47 percent from a year earlier, the company said in a regulatory filing. [7] Net profit in the quarter jumped to 953.2 billion Korean won ($888 million) from 498.5 billion Korean won in the same period a year earlier, the company said in a statement. [8] Net profit reached 953 billion won (US$888 million) in the January-March period, compared with a profit of 499 billion won a year earlier, the company said in a regulatory filing. [6]
The automaker posted a 47% jump in first-quarter net profit, giving the world's fifth-largest automaker sales a strong start to a year that's expected to see strong growth. Thanks to a new addition in its range, with the introduction of the Grandeur premium sedan, as well as the Accent small car available on the Chinese market since the end of 2010, Hyundai increased its world sales by almost 9% last quarter, from the previous year the company said today. [9] SEOULKia Motors Corp., South Korea's No. 2 car maker by sales, on Friday posted a 91% rise in net profit for the quarter ended March 31, as robust demand for new models and an increased sales ratio of high-end to low-end cars boosted profit despite a strong won. [8] SEOUL, April 28 (Xinhua) -- Hyundai Motor, South Korea's No. 1 automaker, said Thursday its first-quarter net profit jumped 46.5 percent from a year earlier on brisk overseas sales. [4] SEOUL — South Korea's Hyundai Motor on Thursday posted a sharp rise in first-quarter net profit amid brisk sales in overseas markets including China and the United States. [7]
Hyundai Motor Co. (005380), South Korea '''s largest carmaker, raised quarterly profit 46 percent as sales climbed in China, Europe and the U.S. Buyers in its home market helped boost profit by purchasing more expensive models. [10] Hyundai Motor Co announced that its quarterly profits increased 46 percent as sales climbed in the United States, China and Europe. Hyundai said that the increase in profits was helped by buyers in its home market purchasing more expensive models. [11]
Hyundai Motor lifted global sales by about 9 percent last quarter from a year earlier after adding new models including the Grandeur premium sedan at home and Accent small car in China since late 2010. [10] SEOUL, April 28 (Reuters) - Hyundai Motor Co reported a 47 percent jump in quarterly profit on Thursday, sending its shares to a record high, with investors betting earnings will continue to grow as Japanese rivals struggle with a production slump. The South Korean firm is less reliant on Japanese parts than other global car makers such as General Motors and Hyundai is widely seen among the biggest beneficiaries of a prolonged disruption in Japanese output this year following the March 11 earthquake. "Hyundai has been emerging as an alternative to Japanese cars, shaking off its image as a maker of cheap cars," said Lee Dong-jin, a fund manager at KTB Asset Management. "It's now seeing some benefits from increasing production at overseas plants while the world took a hit from the financial crisis." [1] Shipments from Chinese plants climbed 13 percent and jumped 23 percent at the U.S. plant, the data showed. Analysts see Hyundai and Kia, which are less reliant on Japanese parts than other global car makers such as General Motors, as among the biggest beneficiaries of a prolonged slump in Japanese output this year in the wake of the March 11 earthquake and tsunami, which savaged Japan's auto sector supply chain and disrupted power supplies. "Hyundai has been emerging as an alternative to Japanese cars, shaking off its image as a maker of cheap cars," said Lee Dong-jin, a fund manager at KTB Asset Management. "It's now seeing some benefits from increasing production at overseas plants while the world took a hit from the financial crisis." [9]
"The good business performance resulted from increased sales at home and overseas, helped by the launch of new models," Lee Jae-rok, Kia's chief financial officer, said at a conference with investors. Kia Motors, an affiliate of industry leader Hyundai Motor Co., will seek to further increase its global sales this year by meeting diverse customer demand, he said. [6] SEOUL, April 29 (Reuters) - Kia Motors, South Korea's No.2 automaker, said on Friday it may be able to exceed its sales target of 2.43 million units this year thanks to robust sales in the United States. The remarks were made by Jason Lee, Kia's CFO, during a meeting with analysts after Kia announced its earnings for the first quarter, a Kia spokesperon said. [12] SEOUL, April 28 (Reuters) - South Korea's Hyundai Motor Co said on Thursday that profitability at its U.S. unit is improving sharply, driven by strong sales of its Sonata sedan and Elantra compact. Hyundai Motor Chief Fiancial Officer Lee Won-hee said the U.S. market was faring far better than expected and sales could to grow to 13 million units this year. [13] SEOUL, April 28 (Reuters) - South Korea's Hyundai Motor said on Thursday that it had signed a final agreement on a 600 billion won ($556.8 million) joint venture with China commercial vehicle maker Sichuan Nanjun Automobile Group Co., Ltd. (Nanjun Auto). The 50-50 joint venture, which will be established in Ziyun city in the southwestern province of Sichuan late this year, aims to produce 160,000 commercial vehicles annually by 2013, Hyundai Motor said in a statement. Hyundai aims to sell 73,000 commercial vehicles in China this year, and 160,000 by 2015. [14]
Hyundai signed a preliminary deal on the joint venture in October last year. China's commercial vehicle market, the world's biggest, is expected to grow to 5.2 million units in 2015 from 4.3 million this year, Hyundai said. Hyundai, the world's No.5 carmaker along with its affiliate Kia Motors, is enjoying a surge in sales in China, fueled by the Verna subcompact, the Elantra compact and other models. [14]
Hyundai sold 922,000 units in the January to March 2011 period, 9 percent more than a year ago. The Korean automaker continues to gain sales this year as Toyota, Honda and other Japanese competitors face production woes following a record earthquake in March. [11] The stock jumped 7.3 percent to the highest closing price since it began trading in January 1975. The carmaker may continue to gain sales this year as Toyota Motor Corp. (7203) and other Japanese rivals curtail production following a record earthquake in March. [10]
Operating profit, or sales minus the costs of goods sold and administrative expenses, rose 46 percent from a year earlier to 1.83 trillion won. Hyundai rose 7.3 percent to 250,500 won at the 3 p.m. close of trading in Seoul, extending a 44 percent gain this year. That compares with the benchmark Kospi index'''s 7.7 percent gain. [10] Sales rose 21.4 percent to 18.23 trillion won with operating profit rising 45.6 percent to 1.83 trillion won. It sold 919,130 cars in January-March period, including 752,466 vehicles overseas, up 11.6 percent from a year ago. [15]
Hyundai Motor's operating profit stood at 1.83 trillion won on sales revenues of 18.2 trillion won (Auto business: 15.5 trillion / Finance and others: 2.7 trillion). [3] Hyundai Motor said Thursday that it achieved record results in the first three months of the year, with W18.23 trillion in sales, W1.83 trillion in operating profit and W1.88 trillion in current net profit (US$1=W1,072). [16]
SEOULHyundai Motor Co. posted a 47% jump in first-quarter net profit, giving the world's fifth-largest auto maker sales a strong start to a year that's expected to see strong growth both from its U.S. push and from weakness among quake-hit Japanese rivals. The South Korean auto maker plans to continue its push into the U.S.its most significant marketby marketing popular, smaller models such as the Sonata midsize sedan and Elantra compact car amid higher oil prices, while trying to enhance brand image through high-end models like the Equus and the Genesis sedans. [17] SEOUL, April 29, 2011 (AFP) - South Korea's Kia Motors said Friday that first-quarter net profit jumped 91.2 per cent year-on-year, helped by popular new models and improved brand image. [18] SEOUL, April 29 (Yonhap) - Kia Motors Corp., South Korea's second-largest automaker, said Friday that its first-quarter earnings nearly doubled to a record high on the back of brisk domestic and overseas sales. [6] SEOUL, April 28 (Reuters) - South Korea's Hyundai Motor Co said on Thursday that profitability at its U.S. unit is improving sharply, driven by strong sales of its Sonata sedan and Elantra compact. [13] A Hyundai Motor Co.' s vehicle Veloster is displayed at the South Korean top car maker's showroom in Seoul, South Korea, Thursday, April 28, 2011. [19] Labor disputes and strikes are extremely common in the South Korean auto industry, with one occuring every summer for a 20 year period from 1988-2008. While North American launch plans are still on track for the second half of this year, Hyundai has been forced to go ahead with a limited roll-out in South Korea, with a target of 18,000 cars sold. The Veloster is a key product in both markets, with the car being both a push into the "premium" market at home, and a way to bring in young customers in the United States. [20] The dispute led to 33% fall in production at the plant, delaying the launch of the new coupe. Hyundai said it plans to sell 18,000 Velosters in South Korea and plans to roll out the coupe in Europe in the first half of this year and North America and other regions in the second half. [21]
'''The rise in selling price and increased overseas production will more than compensate the negatives from a strengthening won on earnings.''' The company expects U.S. auto demand this year at 13 million units, compared with a previous forecast for 12.8 million, Chief Financial Officer Lee Won Hee said in a post- earnings briefing in Seoul today. The carmaker has no plans for a second plant in the country, he said. [10] The latest dispute, reportedly revolving around a proposed reallocation of workers, delayed production of the car for more than two months after the Veloster plant'''s utilization rate fell to 33 percent, essentially shutting down production. Despite the setbacks, the Veloster, which was unveiled at the 2011 Detroit auto show, is on track for delivery in Europe shortly, and in North America and other regions later this year. [22]
The move has been hampered by persistent labour problems, however. The latest protests by Hyundai's unions has been over plans to reallocate workers hit production of the Veloster and Accent models at its plant in Ulsan during January and February. [21] Wondering why the new Hyundai Veloster isn't in dealerships yet? Hyundai said that it will start delivering the new three-door hatchback this week after labor disputes delayed the production the model at the heart of the South Korean firm's major push into the premium car segment. Hyundai said that labor disputes and limited capacity expansion plans remain a hurdle for it's growth as it seeks to halt a slide in market share at home. [23]
Net income consisted of $1.75 billion (EUR1.18 billion) until March 3, as the Q1 sales levels increased up to 21%. This boost in numbers was caused mostly by home market clients that chose to buy more expensive models. Thanks to a new addition in its range, with the introduction of the Grandeur premium sedan, as well as the Accent small car available on the Chinese market since the end of 2010, Hyundai increased its world sales by almost 9% last quarter, from the previous year. [24] Hyundai Motor, the nation''s largest automaker, yesterday reported that net earnings rose 46.5 percent in the first quarter to 1.87 trillion won ($1.74 billion), a result that exceeded market expectations. [15] Hyundai Motor Co., South Korea's largest automaker and a major force in the global industry, earned 1.88 trillion won ($1.75 billion) in the three months ended March. [19]
Over the same period, Hyundai Motor's net profits increased 46.5 percent to about 1.88 trillion won. [5] A boost in sales outside the U.S. lifted Hyundai Motor's first-quarter profit 46 percent, the Detroit News reported today. [25] In overseas markets, Hyundai Motor's sales increased 11.6 percent to 752,466 units (export: 243,935 / overseas plants: 508,531), mainly led by sales of the new Elantra (badged as Avante in some markets). Under the newly adopted accounting standards, Hyundai Motor has 74 affiliates in its consolidated statement, compared to the previous 95. [3] Hyundai Motor's overseas sales for the first three months of the year increased 11.6 percent to 752,000 units, while domestic sales fell 0.6 percent to about 167,000 units. [5]
Hyundai said it also benefitted from increased returns from equity investments. Lee Won-hee, Hyundai Motor chief financial officer, expected the company''s sales in the United States to rise slightly this year from an earlier projection. [15] The Hyundai Motor Company, based in the Republic of Korea, is the world's fifth-largest automotive company and has car plants in several countries, including the United States, China and Russia. [26]
CHENGDU, Apr. 28, 2011 (Xinhua News Agency) -- The Hyundai Motor Company (OOTC:HYMOF) signed a formal agreement on Thursday to create a commercial vehicle joint venture in southwest China's Sichuan Province. [26] Hyundai Motor Group Chairman Chung Mong-koo, second from left in back row, watches as Choi Han-young, Hyundai Motor vice chairman, and Sun Zhentian, chairman of Sichuan Nanjun Automobile Group, sign a final agreement yesterday to set up a 50-50 joint venture to produce commercial vehicles in China at a hotel in Chengdu, Sichuan. [15] Hyundai Motor said yesterday it had finalized an agreement with China''s Sichuan Nanjun Automobile Co. to set up a joint production base for commercial vehicles in Sichuan. [15]
Hyundai plans to sell vehicles in the low- and medium-price segments in China by 2013 and high-end cars from the same year. The South Korean company said before it announced its figures that it had reached a deal with China's Sichuan Nanjun Automobile Co to establish a joint factory to build commercial vehicles in China's Sichuan province. [27]
The company said it sold a total of 619,089 vehicles globally in the first quarter, up 30.4 percent from a year earlier. Its first-quarter domestic sales came to 125,000 units, accounting for 34.6 percent of total vehicle sales in South Korea and up 4.6 percentage points from a year earlier, it said. [6] The company sold 919,000 vehicles at home and abroad in the first quarter, up 9.2 percent compared to a year earlier amid booming demand in China, where sales rose 29 percent. [7]
China, the world's largest and also fastest-growing market, was next with 95,451 vehicles sold there. The record sales are likely to raise Kia Motors' global market share to over 3 percent for the first time in its history. [6]
The executive said that Hyundai would not be affected by component supply disruptions caused by the recent Japanese earthquake as it has alternative supply sources. Hyundai Motor does not expect its sales to increase because of lower production by Japanese automakers affected by the natural disaster since global demand for cars has been rising. [15] Recently, Hyundai Motor ranked third in J.D. Power and Associates' Initial Quality Study, the highest ranking Hyundai ever received. Hyundai Motor will continue to focus on maximizing customer satisfaction through world class quality and services, as well as increasing communication and cooperation with its suppliers to achieve major goals for 2011, including its global sales target of 3.9 million units. [3]
Sales revenues jumped 21.4 percent due to a rise in sales volume, improved product mix and increase in revenues from the finance sector. Starting from this quarter, Hyundai Motor based its earnings on the International Financial Reporting Standards (IFRS), replacing K-GAAP. [3] "The first quarter earnings are very good and the outlook is even rosier. (but) one risk factor is exchange rate trends, since export markets account for a large part of Hyundai Motor's earnings," said Kang Sun-sik, chief analyst at Woori Asset Management. [1]
Hyundai's stellar results came despite the appreciation of the South Korean won, which rose 3.2 percent against the dollar as of the end of the first quarter from a year earlier. [1] According to BusinessWeek, the Korean automaker earned $1.75 billion in the first quarter, up 46 percent versus the first quarter of 2010. [28]
The number of car sales overseas increased 11.6 percent on-year to 752,466 in the first quarter, but domestic sales edged down 0.8 percent to 166,664, according to the statement. [4] The carmaker's sales in terms of vehicles increased 9.2 percent compared to the same period last year to come in at over 919,000 units, with rising overseas sales making up for domestic market slip. [5] Compared to the same period last year, Hyundai Steel's sales increased by 75.8 percent, while operating profits saw a rise of 137 percent. [5]
Sales in China, Europe and the United States increased for Hyundai and, as a result, the manufacturer's Q1 profit reached 46%, according to Automotive News. [24] Sales in the United States jumped by 28 percent on solid performance of the new Avante model, Hyundai said in a statement. [7]
Domestic sales fell 0.8 percent to 166,664 units despite the introduction of new Grandeur and Accent models last year. [15] In the Korean domestic market, sales were slightly down by 0.8 percent to 166,664 units despite the successful launches of the new Azera (badged as Grandeur in some markets) and Accent, because of the exceptionally high sales results during the same period last year. [3]
The company said in a statement that "strong sales of new models, improved brand image and efforts to enhance competitiveness" had led to the improved results. It sold a total of 619,089 vehicles in January-March, up 30.4 per cent from the previous year. [18] "We expect our global sales to further grow from the second quarter of the year when we will begin increasing exports of our new flagship mid-size sedan K5 (sold as the Optima in most overseas markets)," a company executive said. [6]
The steelmaker attributed the rise in sales to stabilization of the second blast furnace's operations allowing increased output. The company also said that the addition of the second furnace allowed it to achieve economy of scale and that cost cutting efforts for its electric arc furnace operations have resulted in savings of 118.5 billion won during the first three months of the year. [5] Each auto company will invest about 300 billion won to set up the tentatively-named Sichuan Hyundai Motor Company with annual production capacity of 160,000 buses and trucks by 2013. [15] Hyundai and its Chinese partner, the Sichuan Nanjun Automotive Group, will each have a 50 percent stake in the joint venture, which will be called Sichuan Hyundai Motor Company, Sichuan Nanjun said in a statement. [26]
Shares in Hyundai Motor spiked 7.28 percent to close at 250,500 won on the Korea Exchange Thursday. [4] China, the world's largest and also fastest-growing market, was next with more than 95,000. Kia Motors is South Korea's second largest automaker after its affiliate Hyundai Motor. Combined, they are the world's fifth largest automaker. [18] Kia Motors and Hyundai Motor make up the world's fifth-largest automotive group, Hyundai Motor Group, which also has South Korea's largest auto parts maker, Hyundai Mobis Co., and dozens of other affiliates. [6]
Hyundai Motor, which has six manufacturing bases outside of South Korea, sold approximately 3.6 million vehicles globally in 2010. [3]
The Veloster is at the heart of Hyundai's push into premium segments which have been dominated by European manufacturers in South Korea. Hyundai is rebranding its image away from a maker of value-for-money vehicles into one that it says evokes new premium at affordable prices. [21]
The country of South Korea does not own Hyundai whatsoever, although there are some laws over how much of South Korean companies can be owned by foreigners. [28] Hyundai, based in South Korea, has expanded to the U.S., including a testing center in Superior Township, as well as factories in China, Turkey, India and Russia. [25]
Much of that increase occurred in plants in the U.S. and China, where output climbed by 14 percent. A richer model mix also buoyed Hyundai's profits, as pricing per model rose by an impressive 14 percent in overseas markets and 2.5 percent in its Korean home market. [28] Hyundai''s average selling price in the domestic market increased by 4.6 percent to 23 million won, while the one for the overseas market took a 14.2 percent jump to $15,500, helping increase the company''s profit margins. [15]
According to Lee Won Hee, Chief Financial Officer for the company, Hyundai should register a sales demand in the U.S. for 2011 of up to 13 million units. Although demand for units is high, the automaker has no plans at this point to build a second facility on the North American continent. [24] Toyota, currently the world's largest carmaker, estimated that it may lose production of 300,000 units in Japan alone and an additional 100,000 units worldwide, due to factories shutdowns and parts supply shortages. Rivals such as Hyundai and Kia are full-operating their plants in the U.S. and this may lead to changes in the world's top selling automaker chart. [24] The Japanese carmaker on April 22 estimated it may lose production of 300,000 autos in Japan and 100,000 at plants abroad through the end of April because of quake-related shutdowns. Hyundai and Kia are running their U.S. plants overtime, unscathed by parts shortages, the companies said earlier this month. [10]
With an initial investment of 3.6 billion yuan (553.6 million U.S. dollars), the joint venture aims to have an annual production capacity of 150,000 commercial vehicles by 2013. Sichuan Hyundai, which will be based in the city of Ziyang in Sichuan, will also produce clean energy vehicles, including electric and gas-powered vehicles, as part of its the mid- and long-term plan, it said. [26]
Hyundai's net income was 1.88 trillion won ($1.75 billion) in the three months ended March 31, compared with a revised 1.28 trillion won a year earlier. [11] Net income was 1.88 trillion won ($1.75 billion) in the three months ended March 31, compared with a revised 1.28 trillion won a year earlier, the Seoul-based company said in a regulatory filing today. [10]
The company's net profit hit 1.87 trillion won (1.74 billion dollars) in the January-March quarter, the Yonhap News Agency reported. [27] Net profit for the three months to March 31 reached 953.2 billion won (S$1 billion). [18]
The earnings amounted to $1.75 billion, compared with a net profit of $1.19 billion last year. [25] Holy cow. Is this the net profit or the pretax profit? I had one guy arguing with on the VW profits section here saying that VW has a $4 billion pretax profit (without any mention of a source)while Ford had a pretax profit of $2.8 Billion which was reported clearly. [28]
'''Hyundai'''s showing strong earnings momentum on new models and improved quality,''' said Lim Jeong Seok, head of equity at KDB Asset Management Co., which oversees the equivalent of $2 billion in assets in Seoul. [10] SEOUL, April 29 (Reuters) - Seoul shares opened higher on Friday following firm gains on Wall Street, with gains led by the banking and auto sectors. Kia Motors jumped 2.3 percent ahead of its first-quarter earnings announcement. [29] Shares of Kia Motors were trading at 78,400 won on the Seoul bourse as of 10:15 a.m., down 1.63 percent. [6]
By country, the United States remained the largest market for Kia Motors with 104,774 vehicles sold there in the January-March period. [6] The United States remained the largest overseas market with 104,774 vehicles sold there in the first quarter. [18] Hyundai sold 752,466 vehicles abroad in the first quarter, a rise of 11.6 per cent. [27]
The carmaker's affiliate steelmaker Hyundai Steel also posted first quarter sales Thursday. [5]
''''''Hyundai has to overcome labor issues involving subcontract workers and a new shift system (to keep solid growth),''' said Lim Eun-young, an analyst at Dongbu Securities. As a result of the union protests, Hyundai will have a limited launch in its home market, and is aiming for 18,000 Veloster sales this year. [22] Stateside sales of the Veloster shouldn'''t be as hampered, as a representative of Hyundai Motor America tells us that no delays are expected for the U.S. market launch. [22] Lee added that Hyundai Motor has no immediate plans to build a second factory in the U.S., although it might be considered in the long-term. [15]
Hyundai Motor Company (Hyundai) is an international automobile manufacturer based in Korea. The company, along with its subsidiaries, affiliates and ventures focuses on designing, developing and manufacturing of passenger and heavy duty automobiles a. [21] Hyundai Motor Company - SWOT Analysis examines the company'''s key business structure and operations, history and pr. [21] Datamonitor's Hyundai Motor Company - SWOT Analysis company profile is the essential source for top-level company data and information. [21]
People examine a Hyundai Motor Co. Equus sedan at the Auto Shanghai 2011 car show in Shanghai. [10] Beijing (dpa) - Hyundai Motor Co said its first-quarter earnings had risen by 46.5 per cent year-on-year, media reports said Thursday. [27] Established in 1967, Hyundai Motor Co. has grown into the Hyundai Motor Group which has ranked as the world's fifth-largest automaker since 2007 and includes more than two dozen auto-related subsidiaries and affiliates. [3] Hyundai Motor expects the new standard to raise shareholder value by providing domestic and foreign investors more transparent and effective corporate information. [3]
Japan's Honda Motor Co reported a 52 percent fall in quarterly operating profit and refrained from providing an outlook for the new business year due to the impact of last month's massive earthquake. [2] Operating profit climbed 45 percent to 1.83 trillion won while revenue rose 21 percent to 18.23 trillion won in January-March. [7] First-quarter sales were up 21 percent to 18.23 trillion won on a consolidated basis. [11]
Hyundai'''s first-quarter average selling price in the local market rose 2.5 percent from a year earlier and 14 percent in overseas markets, Cho at Woori estimated. He rates Hyundai '''buy.''' The won gained 5 percent this year, the best performer among Asia '''s 10 most actively traded currencies, excluding the yen, tracked by Bloomberg. [10] After the results were announced, Hyundai shares ended 7.3 percent higher at an historic high. The stock has risen more than a third this year, comfortably beating an 8 percent rise in the KOSPI. [1]
Hyundai-Kia sold 549,596 vehicles worldwide in March alone, surpassing Toyota with 542,465 for the first time. The Korean firm plans to produce 6.33 million cars this year, but it has the capacity for 7 million if there is sufficient demand. With Japanese automakers unlikely to return to normal operations by the end of the year, Hyundai-Kia is expected to ship more vehicles than its Japanese rivals throughout the year. [16] The maker of the Sonata sedan and Elantra small car sold 922,000 units in the January to March period, 9 percent more than a year earlier, according to company data. [10]
Hyundai sold 922,000 units starting from January 2011 up to the end of March, as sales from overseas factories rose 14%. [24] Sales volume was higher as well, as the 922,000 units sold globally represented a nine percent increase. [28]
Sales from overseas factories increased 14 percent, while sales in the domestic market were little changed. [10] The brisk performance is attributed to a rise in overseas sales, reduced production costs and disrupted production among Japanese carmakers due to the disaster. "If this pace keeps up, Hyundai-Kia is likely to overtake Toyota and Renault-Nissan to rank No. 3 after GM and Volkswagen," Prof. Kim Ki-chan at the Catholic University of Korea said. [16] South Korea's largest carmaker put the increase down to gains from investments and good overseas sales. [27]
The Korean group ranked fifth last year with sales of 5.74 million cars worldwide while Toyota took the No. 1 spot with 8.42 million. [16] ''We originally predicted U.S. demand for cars to reach 12.8 million vehicles this year, but it is expected to be able to rise to 13 million units,'' he said. [15]
Honda Motor Co, Japan's No.3 automaker and fourth-biggest in the U.S. market, said on Monday it would take until the end of the year before production returned to normal, echoing recent comments from Toyota. [1] Hyundai-Kia Automotive Group has a shot at becoming the third largest automaker in the world this year amid better-than-expected sales and sluggish performance by Japanese rivals in the wake of the earthquake and tsunami there. [16] Fuel-economy wise, the 2012 Veloster is expected to get up to 40 mpg. Sales start later this year. [23]
Operating profit soared 90.1 per cent from a year earlier to 839.9 billion won. [18] The company's global market share had been steadily growing from 1.9 percent in 2007 to 2.1 percent in 2008, 2.6 percent in 2009 and 2.9 percent last year. [6] Hyundai's impressive quarterly performance helped rally stocks in Korea, and the automaker saw a 7.5 percent gain on the day. [28] A stronger local currency usually cuts the repatriated earnings from Hyundai'''s exports. Toyota, which may lose its top spot as the world'''s largest carmaker because of reduced output following the 9-magnitude quake and tsunami that struck Japan on March 11, estimated in April that it would need until at least November to return production to pre-quake volumes. [10] " The rise in selling price and increased overseas production will more than compensate the negatives from a strengthening won on earnings, " he concluded. [24]
A labor dispute involving changes to the shift structure at the Veloster's plant in Ulsan caused a production slowdown, which saw the plant operate at 33 percent capacity. [20] Hyundai Corporation (Hyundai) is a Korea-based trading company engaged in international trade and distribution services for products such as ships, plants, automobiles, steel, machinery, chemicals, electrical and electronics products, and other merch. [21] Further information about Hyundai Motor and its products is available at www.hyundai.com. [3] Hyundai Motor's ongoing efforts to increase brand awareness and achieve qualitative growth have been recognized in the industry. [3]
Hyundai plans to sell low and mid-priced vehicles in China by 2013 then launch high-end cars after 2013, Lee said. [15]
SOURCES
1. UPDATE 3-Hyundai shares jump to record high after profit surge | Reuters
2. UPDATE 1-Kia Motors Q1 profit surges 91 pct; outlook rosy | Reuters
3. Hyundai Motor Reports 2011 First Quarter Earnings | Cision Wire
4. Hyundai Motor net profit surges 46.5 pct in Q1
5. Untitled
6. Kia Motors Q1 net almost doubles on strong sales
7. AFP: Hyundai Motor Q1 net profit jumps
8. Kia Motors Net Profit Jumps 91%; Optima Growth Catalyst for 2011 - WSJ.com
9. Hyundai Motor Q1 profit up 47 per cent
10. Hyundai Motor First-Quarter Profit Rises 46% on More Expensive, New Models - Bloomberg
11. Hyundai's first-quarter 2011 profits rise 46% - egmCarTech
12. Kia Motors says 2011 sales may surpass target | Reuters
13. Hyundai Motor says U.S. profitability improving sharply | Reuters
14. Hyundai Motor signs final $557 mln JV deal with Nanjun Auto | Reuters
15. INSIDE Korea JoongAng Daily
16. The Chosun Ilbo (English Edition): Daily News from Korea - Hyundai Motor Posts Record Results in Q1 Amid Japanese Slowdown
17. Hyundai Net Profit Jumps 47% Amid Strong Growth Prospects - WSJ.com
18. Kia Motors earnings surge 91%
19. Hyundai Motor quarterly profit rises 46 percent
20. Hyundai Veloster Delayed Two Months Due To Labor Dispute | AutoGuide.com News
21. SOUTH KOREA: Hyundai Veloster deliveries start at last: Automotive news & analysis
22. Hyundai Veloster Production Back on Track After Labor Delay - WOT
23. Hyundai Veloster to begin delivery after short delay - egmCarTech
24. Hyundai Posts 46% Profit in Q1 - autoevolution
25. Autos News - 1st quarter profits up 46 percent at Hyundai Motor - AnnArbor.com
26. Hyundai Motor to create commercial vehicle JV in SW China
27. Hyundai's first-quarter earnings surge 46.5 per cent - Monsters and Critics
28. Hyundai quarterly profit up 46% to $1.75B -- Autoblog
29. Seoul shares open up, Kia Motors gains | Reuters
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