Leading South Korean automakers, Hyundai Motor Co. and Kia Corp., are poised to announce a subdued performance for their first-quarter earnings, a recent market analysis indicates. The anticipated decline from last year’s figures is largely attributed to the persistent impact of US tariffs and a weaker Korean won.
Forecasts compiled by Infomax from various securities firms over the last three months project Hyundai Motor to post average sales of 45.89 trillion won ($30.4 billion) for the January-March period. Its operating profit is estimated at 2.78 trillion won, as per the earnings report expected this Thursday.
While this projected sales figure indicates a modest 3.3 percent year-over-year increase, the operating profit is expected to see a significant 23.3 percent decline.
Similarly, sister automaker Kia Corp. is projected to announce sales of 29.62 trillion won and an operating profit of 2.32 trillion won when its report is released on Friday. This represents a 5.7 percent year-on-year sales growth, coupled with a 22.6 percent decrease in operating profit.
These forecasted declines in profitability occur despite both Hyundai Motor and Kia demonstrating relatively robust sales performance compared to their global competitors. The primary factors offsetting these gains are believed to be the continued impact of US tariffs, which were implemented in April last year, alongside increased warranty-related provisions.
Preliminary data from the companies reveals that Hyundai Motor sold 975,123 vehicles worldwide during the first quarter, marking a 2.6 percent decrease from the previous year. In contrast, Kia Corp. reported global sales of 779,169 units, a slight increase of 0.8 percent.
