ID :
25800
Tue, 10/21/2008 - 17:34
Auther :
Shortlink :
https://www.oananews.org//node/25800
The shortlink copeid
Hyundai Motor to post `worst quarterly earnings` in 10 years
(ATTN: ADDS quote, details, stock reaction in paras 10-12; EDITS lead para; AMENDS headline)
SEOUL, Oct. 21 (Yonhap) -- Hyundai Motor Co. is on course to report the "worst quarterly earnings" in 10 years this week as derivatives losses ballooned and the global financial crisis dampens demand for its vehicles at home and abroad, an analyst said Tuesday.
Korea's weakened currency, which has lost 30 percent of its value against the
U.S. dollar, isn't enough to offset poor sales in major overseas markets,
including the U.S., where recent economic data points to a recession amid the
worst financial turmoil since the 1930s, said Kiwoom Securities analyst Kim
Doo-hyun in a report to clients.
"Hyundai Motor will likely post the worst quarterly earnings for the
third-quarter of this year since 1998," Kim said.
Kim expected Hyundai's third-quarter revenues to fall 9.9 percent from a year
earlier to 6.3 trillion won (US$4.7 billion).
Third-quarter operating profit will fall to 63.4 billion won, compared with 662.5
billion won reported a quarter ago, Kim said.
In the three months ending Sept. 30, Hyundai's vehicle sales in South Korea, the
automaker's most lucrative market, will likely fall 19.9 percent and its exports
may decline 16.3 percent, the analyst said. He did not offer a prediction about
the company's net profit.
For the second-quarter of this year, Hyundai reported a net profit of 546.9
billion won on sales of 9.1 trillion won.
Hyundai was scheduled to release its third-quarter earnings on Thursday.
On Monday, Hyundai said it will suspend production at its sole factory in the
U.S. for 11 days as its sales in the world's largest auto market plunged amid
sluggish demand.
In a statement, Robert Burns, a spokesman at Hyundai Motor's Alabama plant, which
opened in 2005 said it has decided to reduce production, citing "a number of
economic factors beyond our control."
Hyundai began producing vehicles such as mid-size Sonata sedan and Santa Fe
sport utility vehicle in 2005.
Shares of Hyundai Motor slumped 4.13 percent to 58,000 won at one point in early
afternoon trading on Tuesday.
Hyundai, like its global competitors, is facing cooling demand in the U.S. market
as American consumers are pinched by falling home prices and a reduced
availability of credit.
In September, Hyundai sold 24,765 vehicles in the U.S., down 25.4 percent from a
year earlier, marking the third straight monthly decline.
In the first nine months of this year, Hyundai sales in the U.S. sunk six percent
from a year ago to 337,664 units. Despite the decline, Hyundai insisted its U.S.
sales target of 515,000 units for this year was achievable.
(END)
SEOUL, Oct. 21 (Yonhap) -- Hyundai Motor Co. is on course to report the "worst quarterly earnings" in 10 years this week as derivatives losses ballooned and the global financial crisis dampens demand for its vehicles at home and abroad, an analyst said Tuesday.
Korea's weakened currency, which has lost 30 percent of its value against the
U.S. dollar, isn't enough to offset poor sales in major overseas markets,
including the U.S., where recent economic data points to a recession amid the
worst financial turmoil since the 1930s, said Kiwoom Securities analyst Kim
Doo-hyun in a report to clients.
"Hyundai Motor will likely post the worst quarterly earnings for the
third-quarter of this year since 1998," Kim said.
Kim expected Hyundai's third-quarter revenues to fall 9.9 percent from a year
earlier to 6.3 trillion won (US$4.7 billion).
Third-quarter operating profit will fall to 63.4 billion won, compared with 662.5
billion won reported a quarter ago, Kim said.
In the three months ending Sept. 30, Hyundai's vehicle sales in South Korea, the
automaker's most lucrative market, will likely fall 19.9 percent and its exports
may decline 16.3 percent, the analyst said. He did not offer a prediction about
the company's net profit.
For the second-quarter of this year, Hyundai reported a net profit of 546.9
billion won on sales of 9.1 trillion won.
Hyundai was scheduled to release its third-quarter earnings on Thursday.
On Monday, Hyundai said it will suspend production at its sole factory in the
U.S. for 11 days as its sales in the world's largest auto market plunged amid
sluggish demand.
In a statement, Robert Burns, a spokesman at Hyundai Motor's Alabama plant, which
opened in 2005 said it has decided to reduce production, citing "a number of
economic factors beyond our control."
Hyundai began producing vehicles such as mid-size Sonata sedan and Santa Fe
sport utility vehicle in 2005.
Shares of Hyundai Motor slumped 4.13 percent to 58,000 won at one point in early
afternoon trading on Tuesday.
Hyundai, like its global competitors, is facing cooling demand in the U.S. market
as American consumers are pinched by falling home prices and a reduced
availability of credit.
In September, Hyundai sold 24,765 vehicles in the U.S., down 25.4 percent from a
year earlier, marking the third straight monthly decline.
In the first nine months of this year, Hyundai sales in the U.S. sunk six percent
from a year ago to 337,664 units. Despite the decline, Hyundai insisted its U.S.
sales target of 515,000 units for this year was achievable.
(END)
