Hyundai Motor reports 23% rise in Q2 profit, surpasses analysts' expectations

Hyundai earnings:  South Korea's Hyundai Motor Co has announced a 23 per cent increase in its second-quarter profit, exceeding analysts' expectations. This growth was driven by favorable exchange rates and robust sales of high-margin sport utility vehicles (SUVs) and hybrid cars.

Hyundai Motor, along with its affiliate Kia Corp, ranks as the world's third-largest automaker by sales. The company reported a net profit of 4 trillion won ($2.89 billion) for the April-June period, up from 3.2 trillion won a year earlier.

This result surpassed the average profit forecast of 3.4 trillion won, as estimated by 21 analysts compiled by LSEG SmartEstimate, which prioritizes the estimates from analysts with a track record of higher accuracy.

Hyundai Motor Co reported a notable increase in its second-quarter profit, with US vehicle sales, its largest revenue-generating market, rising by 2.2 per cent. High-margin sport utility vehicles (SUVs) made up approximately 80 per cent of these sales, while hybrid vehicle sales surged by 42 per cent compared to the same period last year.

Analysts attributed Hyundai's profit growth to a favorable exchange rate in the second quarter. The South Korean won depreciated by 4.3 per cent against the dollar from a year earlier, enhancing Hyundai's repatriated overseas sales and profit.

( With Reuters inputs)