New Hyundai automobiles are displayed on the gross sales lot at San Leandro Hyundai on Might 30, 2023 in San Leandro, California.
Justin Sullivan | Getty Pictures
South Korea’s Hyundai Motor Co on Thursday reported a 31% rise in fourth-quarter revenue that missed analyst expectations because of unfavorable change charges in addition to one-off prices associated to the sale of its Russia plant in December.
Hyundai Motor, the world’s No.3 automaker by gross sales with its affiliate Kia Corp, reported a internet revenue of two.2 trillion received ($1.65 billion) for the October-December interval versus a revenue of 1.7 trillion received a yr earlier.
That in contrast with a 2.9 trillion received common forecast by LSEG SmartEstimate, which is weighted in the direction of estimates from analysts who’re extra persistently correct.
In December, Hyundai Motor mentioned it might take a 287 billion received ($219.2 million) loss on promoting its plant in Russia, the place operations have been suspended since March 2022.
Hyundai is focusing on income progress of 4.0%-5.0% this yr. It expects a 4.9% leap in North American car gross sales however a 3.7% drop and 0.6% fall in car gross sales in China and Europe, respectively.
It predicted an working revenue margin between 8.0% and 9.0% consistent with final yr.
“Hyundai Motor expects the enterprise atmosphere will stay tough to foretell, because of macro uncertainties centered on rising markets and a downturn in the actual economic system,” Hyundai Motor mentioned in an announcement.
Analysts famous that like different automakers, Hyundai is grappling with slowing progress because of a tough financial atmosphere, together with excessive rates of interest and inflation which have pushed automobiles out of the attain of some consumers.
“It seems that pent-up demand for automobiles from restricted provides has been disappearing as excessive rates of interest eat away automotive consumers’ willingness to buy,” mentioned Lee Jae-il, an analyst at Eugene Funding & Securities.
Lee added that Hyundai Motor would doubtless handle its car stock stage extra tightly than earlier years as pent-up demand has disappearing and extreme inventories would harm its profitability.
Shares in Hyundai Motor have been buying and selling up 2.0% after it reported its earnings, outperforming 0.1 rise for the benchmark Kospi.