Hyundai Motor Company, last year’s operating profit of KRW 2.7 trillion… 23% decrease from the previous year (total)

Last year’s sales were 104 trillion won… Exceeded 100 trillion won for 2 consecutive years

4Q operating margin of 5.6%… First over 5% since 3Q 2017

(Seoul = Yonhap News) Reporter Jang Hana = Hyundai Motor Company[005380]Last year, the global automobile market contracted in the aftermath of a novel coronavirus infection (Corona 19), resulting in an operating profit of less than 3 trillion won.

Sales exceeded 100 trillion won following last year.

Hyundai Motor Company announced on the 26th that its operating profit fell 22.9% compared to the previous year to 2,781.3 billion won as a result of its annual performance. The operating margin fell 0.8 percentage points to 2.7%.

Last year’s sales were 10,3997 trillion won, down 1.7% from the previous year. Last year’s first annual sales exceeded 100 trillion won and reached 100 trillion won for two consecutive years.

Net profit decreased by 33.5% to 2,117.8 billion won.

The number of finished vehicles sold decreased by 15.4% to 3744,000,737 units (787,000 in Korea and 2956,890 overseas). Domestic demand increased 6.2%, but fell 19.7% overseas.

Looking at the fourth quarter of last year alone, the operating profit was 1.641 trillion won, an increase of 40.9% compared to the same period last year. Sales of luxury cars such as Sports Utility Vehicles (SUV) and Genesis GV80 and G80 increased, and operating profit improved significantly.

The operating margin in the fourth quarter of last year was 5.6%, exceeding 5% for the first time since the third quarter of 2017 (5.0%).

Sales amounted to 29,244.3 billion won, up 5.1% from the same period last year. Hyundai Motor explained that the won-dollar exchange rate declined from 1,176 won in the fourth quarter of 2019 to 1,118 won in the fourth quarter of last year. .

The cost of sales ratio was 81.6%, down 1.5 percentage points from the same period last year.

Net income increased by 78.3% to 1.3767 billion won.

In the fourth quarter of last year, the total number of finished cars sold was 113,583 units, including 204,190 domestic and 9353,393 overseas. Domestic sales increased by 5.0%, while overseas sales decreased by 6.6%, down 4.7% from the same period last year.

A Hyundai Motor Company official said, “The global auto demand is showing a gradual recovery, but sales in the fourth quarter continued to decline compared to the same period last year due to the re-proliferation of Corona 19.”

Hyundai Motor is predicting that despite the economic stimulus policies and base effects of each country this year, it is difficult to expect a recovery to the level before Corona 19, and the environment such as intensifying competition and unfavorable exchange rates will continue.

This year’s global market sales target was set to 4.16 million units, including 741,000 units in the domestic market and 3418,000 units in the overseas market.

In addition, this year’s auto sales growth target is 14-15% compared to the previous year, and the operating margin target is 4-5%, respectively.

Hyundai Motor Company plans to invest a total of 8.9 trillion won, including facility investment of 4.5 trillion won, R&D investment of 3.5 trillion won, and strategic investment of 900 billion won this year for future growth.

An official from Hyundai Motors explained, “We plan to focus on improving profitability by successfully establishing the global market for Genesis and Ioniq brands, expanding SUV sales, promoting production and profit optimization, and accelerating cost innovation.”

Meanwhile, it was decided to keep the dividend at the end of last year at 3,000 won, the same as the previous year.

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2021/01/26 14:23 sent