U.S. sales boost Hyundai profit
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Improved sales in the U.S. have helped Hyundai offset a troubled domestic performance.
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SEOUL, South Korea (Reuters) -- South Korea's top automaker, Hyundai Motor, has reported a sharp rise in quarterly net profit, fueled by record U.S. sales of its new Sonata sedan and Santa Fe sport utility vehicle.
Hyundai, 10 percent owned by U.S.-German maker DaimlerChrysler, posted a net profit of 460 billion won ($396.5 million) for the fourth quarter ended December 31.
That compares with 253.9 billion won a year ago. Sales were 7.3 trillion won versus 6.8 trillion won previously.
Bumper exports at South Korean automakers have made up for weak domestic sales and helped pull the economy out of a prolonged slump.
Exports, which make up 60 percent of Hyundai Motor's earnings, rose 11 percent to 424,413 units in the fourth quarter, while local sales fell 15 percent to 149,634 units.
The earnings growth topped a 60 percent rise in quarterly profit for Japan's top automaker, Toyota Motor, which reported last week.
Hyundai's improving brand image also contributed to higher foreign sales.
It ranks seventh in the United States with a 2.5 percent market share, just behind Nissan and above Mitsubishi Motors.
Solid overseas demand in 2004 should put Hyundai on track to achieve record sales of 2.145 million vehicles. The maker, which controls nearly half the South Korean auto market, has seen three consecutive years of record sales.
But overall sales by Hyundai and its smaller rivals fell a combined 10 percent in January as debt-laden domestic consumers were reluctant to shell out on new cars, more than offsetting a strong export figure.
Growing inventories in the key U.S. market may slow exports in the coming months and coupled with fears of a rising won currency could be a drag on stock prices, analysts said.
Shares in Hyundai Motor, the country's seventh biggest stock with a market value of $9 billion, are down 0.6 percent at 47,350 won in Friday afternoon trade.
The stock has risen nearly 40 percent in the last six months, outperforming the wider market's 25 percent gain.
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
