Hyundai Profit Rises 48%
SEOUL - Demand for new models such as the Elantra compact car helped Hyundai Motor Co. post a 48% fourth-quarter profit jump, and the company said it intends to use those models to grow its presence in the U.S., where it is continuing to grab share, The Wall Street Journal reported.
The company also said that a favorable foreign currency environment, which is making its cars cheaper than those of its Japanese rivals, combined with the recalls that have hurt Toyota Motor Corp.'s reputation, should help it accelerate sales in the key U.S. market.
Hyundai Motor, which together with 39%-owned Kia Motors Corp. forms the world's fifth-largest car maker by sales, posted a 48% jump in fourth quarter net profit to 1.397 trillion South Korean won ($1.26 billion) from 945.4 billion won a year earlier, slightly below market expectations of 1.443 trillion won. Operating profit climbed 8.6% to 908.8 billion won, while sales were up 3.1% to 9.944 trillion won.
"Despite a strong won, increased sales and an improved product mix gave a boost to the bottom line," Hyundai Motor Executive Vice President Lee Won-hee said at an investor relations session. Shareholding gains from Kia also helped the bottom line.
The latest results from Hyundai, the first major Asian auto maker to report fourth quarter figures, underscore how the South Korean company's attractive pricing strategy and focus on smaller, fuel-efficient cars have helped it boost sales in key overseas markets such as the U.S. Hyundai's growing reputation for quality is also helps it compete with Toyota, which has seen its many vehicle recalls dent sales.
Hyundai said it is targeting a bigger share of the U.S. market this year as the economy there recovers, but added it expects to see weaker sales in China and Europe.
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