SEOUL—Hyundai Motor Co.'s second-quarter net profit fell by more
than a fifth, hurt by weak sales in China and the U.S., its two
biggest markets, and by currency weakness in Russia and emerging
markets.
Hyundai's sales in China slumped 8.5% in the first half of the
year, hamstrung by a lack of new models. It was the latest foreign
car maker to report slowing demand in the world's largest vehicle
market.
In the U.S., the South Korean auto maker had to offer more
incentives to buttress declining sales of sedans, which have become
less appealing to consumers who favor larger sport-utility vehicles
and trucks.
The world's fifth-biggest auto maker by sales when combined with
affiliate Kia Motors Corp. said April-June net profit was 1.79
trillion won ($1.54 billion), down 24% from 2.35 trillion won a
year earlier. The result was in line with market expectations for
1.75 trillion won.
Second-quarter operating profit fell 16% to 1.75 trillion won
from 2.09 trillion won. Revenue gained 0.3% to 22.82 trillion won
from 22.75 trillion won.
The sixth consecutive fall in quarterly net profit comes as
Hyundai struggles to compete with Japanese rivals like Toyota Motor
Corp. that are reaping hefty profits on the back of a weaker
yen.
As well, sales from Hyundai's Russian operations were hurt by
the weak ruble as the country suffers from lower oil prices.
Yet Hyundai said Thursday that its board had approved a plan to
pay its first-ever interim dividend as part of efforts to increase
shareholder value. Shareholders registered at the end of June will
receive 1,000 won ($0.86) per share, the company said in a
regulatory filing.
In late trading the company's shares were up 5% at 137,500 won.
The broader market was up 0.1%.
Write to In-Soo Nam at In-Soo.Nam@wsj.com
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