agent Entrepreneur logo
MenuMENU
SearchSEARCH

Hyundai Motor Net Profit Up 38%

October 28, 2010
3 min to read


SEOUL — Hyundai Motor Co. Thursday posted a better-than-expected 38% rise in third quarter net profit and sounded an upbeat note for the current period, saying planned new car launches and higher selling prices will help its performance.


Hyundai is planning to launch several new models in the U.S. over the coming months, starting with the Equus large sedan in November, as it pushes to expand its global market share, which stood at 5.5 percent in the third quarter. Hyundai, together with its 39 percent-owned affiliate Kia Motors Corp., is the world's fifth-largest car maker by sales.

Ad Loading...


South Korea's No. 1 car maker by sales posted a net profit of 1.353 trillion South Korean won ($1.2 billion), compared with 979.1 billion a year earlier. The average of estimates in a Dow Jones Newswires poll of 12 analysts was for a net profit of 1.166 trillion won.


"Robust sales in overseas plants in the U.S. and China surged and expanded sales of mainstay products, such as the Sonata and Avante sedans, will continue to bolster profitability" in the fourth quarter, Chief Financial Officer Lee Won-hee said. The Avante also is sold as the Hyundai Elantra.


This year, more than 50 percent of the company's production on average has come from outside Korea. With overseas production now outstripping domestic output, Hyundai will be less vulnerable to foreign-exchange fluctuations, trade conflicts and labor disputes, which analysts say have hit its results from South Korean plants.


Sales at Hyundai's overseas plants increased 20 percent to 483,941 vehicles in the third quarter from 402,801 units a year earlier, and accounted for 54% of total sales, the highest share ever, up from an average of 48 percent in 2009, the company said.


"It really is a significant moment for Hyundai as it is in the process of evolving into a global car maker by churning out more vehicles overseas," said Suh Sung-moon, an analyst at Korea Investment & Securities.

Ad Loading...


In another positive sign, Hyundai's Lee said the Sonata's U.S. sales price was higher or similar to Toyota Motor Corp.'s rival Camry sedan in the third quarter, an encouraging sign as sales there remained robust.


Meanwhile, Michael Sohn at Macquarie said that an improving U.S. economy means auto makers can cut back on sales incentives there, which should help Hyundai's earnings and brand value in the world's most important car market.


In addition, Sohn said, with sales growth outstripping capacity expansion, Hyundai will benefit from being able to maintain a low inventory level.


The company said higher utilization rates of plants and an improved product mix propped up its quarterly earnings, despite higher input costs and fewer working days due to a holiday.


The dollar fell 4.5% to an average of 1,185.59 won in the third quarter from 1,240.89 won a year earlier. The stronger won worked as a double-edged sword, driving down profits from overseas sales when converted into the local currency, but also pushing down the amount the company sets aside in dollar-denominated provisions for overseas after-sales services.

Ad Loading...


For 2011, the company will set up business plans based on an exchange rate of 1,100 won to the dollar, which hasn't changed from this year when it has also drawn up plans at the same exchange rate, Lee said.

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...