South Korea’s flagship automaker saw its Q3 profits plummet 67% year on year due to a stronger Korean won and hefty recall costs in the US market.
Hyundai Motor’s net profits for the quarter were 305.95 billion won (US$269 million), down from 939.18 billion won in Q3 2017, the company said in a statement reported Thursday by Yonhap news agency.
The company blamed costs from air-bag- and engine-related recalls in the United States for the fall. Additional negative factors were the Korean won’s strength against emerging market currencies and the dollar, and poor sales in China and the United States.
Hyundai said it will prioritize its higher-value SUVs in the fourth quarter, but investors were unimpressed: Hyundai shares shed 5.98% on the day.
Still there was some good news: sales rose 1%, with the maker selling 3.32 million vehicles in the first three quarters, a modest rise over the 3.28 million units sold in the same period in 2017.
The company’s sales target for 2018 is 4.68 million vehicles.