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[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Motor Co. and Kia Motors Corp., which posted record-high earnings in the first half of this year, are expected to see their combined annual operating profit rise to 26 trillion won as they forecast positive performance in the third and fourth quarters.
Hyundai Motor Group's record-high performance is based on strong sales of high-yield models such as sports utility vehicles (SUV), eco-friendly cars and Genesis and continued favorable exchange rate conditions.
According to related industries and financial information provider FnGuide on the 3rd, Hyundai Motor's sales in the third and fourth quarters of this year are expected to increase 4.7% year-on-year to 39.475 trillion won. During the same period, operating profit is expected to reach 3.4882 trillion won, up 124.8 percent from last year. Kia's sales in the third and fourth quarters are expected to rise 7.7 percent on-year to 24.9441 trillion won, while operating profit will jump 263.1 percent to 2.7895 trillion won. As a result, Hyundai Motor's annual operating profit is expected to reach 14.7911 trillion won and Kia's 11.832 trillion won, totaling 26.6231 trillion won.
Although it falls short of the level of the second quarter of this year, which was the highest since its establishment on a quarterly basis, both Hyundai Motor and Kia are the best performance in terms of the third quarter alone. Behind the increase in operating profit, there are no negative one-off factors and the normalization of vehicle production and an increase in the proportion of high-profit models due to improved semiconductor supply and demand.
In the third and fourth quarters of last year, Hyundai Motor reflected KRW 1.36 trillion and Kia 1.54 trillion in its performance as quality costs related to Theta2 GDI engine defects. This year, operating profit is expected to increase significantly compared to the same period last year because there are no one-off factors like this.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
