Hyundai Motor posts ninth straight quarterly profit dropApril 26, 2016 - 14:03 AMT PanARMENIAN.Net - Hyundai Motor (005380.KS) posted its ninth straight quarterly profit drop on slower sales in China and other emerging markets, a trend the South Korean automaker seeks to reverse by supplying more sport utility vehicles (SUVs) and launching new sedans, Reuters reports. Strength in smaller, fuel-efficient sedans helped Hyundai Motor outperform the industry during the global economic downturn, but has left it reeling from a consumer shift to gas-guzzling sport utility vehicles (SUVs) in recent years, driven by a slump in the price of oil. Hyundai Motor, the world's fifth-biggest automaker together with affiliate Kia Motors (000270.KS), reported on Tuesday, April 26 a 12 percent drop in first-quarter net profit to 1.69 trillion won ($1.47 billion), but higher than the 1.46 trillion won average estimate of 14 analysts polled by Thomson Reuters I/B/E/S. In China, its biggest market, Hyundai Motor sold 10 percent fewer vehicles in the quarter, as it trailed rivals in tapping soaring demand for SUVs. "The biggest challenge facing Hyundai is securing its competitiveness in China and maintaining its market share there," said Kim Sung-soo, a fund manager at LS Asset Management, which owns Hyundai Motor shares. Revenue rose 7 percent to 22.35 trillion won for the quarter, but operating profit declined 16 percent to 1.34 trillion won. Hyundai Motor said on Tuesday it will aim to gradually improve earnings by launching its Elantra sedans and boosting SUV supply in the U.S. and China markets. Hyundai needs to build its fourth and fifth factories in China because of its sustained growth, Hyundai's chief financial officer Choi Byung-chul said in an earnings conference call. His comments come amid concerns about slowing growth and rising competition in the world's biggest auto market. Top stories Azerbaijani President Ilham Aliyev arrived in Moscow on April 22 to hold talks with Russian counterpart Vladimir Putin. Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". Partner news | Russia sends note of protest to Armenia over envoy’s trip to Ukraine’s Bucha Russia has sent a note of protest to Armenia over the visit of Vladimir Karapetyan and Tigran Ter-Margaryan to Bucha. Armenia: Protesters march to parliament, some spend the night on street The protesters did not disperse despite heavy rain that began at around 2 a.m. local time. Concept to complete Yerevan Cascade discussed at city hall A conceptual proposal to complete the Cascade complex in downtown Yerevan has been presented by Jean-Michel Wilmotte. Pashinyan visits flood-hit region Armenian Prime Minister Nikol Pashinyan on Saturday, June 8 visited the disaster area in the Lori province. |