SEOUL, April 23 - Hyundai Motor said on Thursday that its operating profit for the first quarter fell 31% from a year earlier, with reported operating profit at 2.5 trillion won for January through March, down from 3.6 trillion won in the prior-year period.
The automaker attributed weaker demand in the Middle East and a recall of its Palisade SUV as factors that weighed on earnings. Hyundai reported that its first-quarter revenue rose 3.4% from a year earlier to 45.9 trillion won.
The reported operating profit matched a 2.5 trillion won LSEG SmartEstimate, a consensus measure weighted toward analysts deemed more consistently accurate. The company noted the year-on-year profit decline occurred despite the revenue increase.
Market reaction was negative following the results announcement, with Hyundai shares trading down about 2% after the earnings were released. The company and its affiliate Kia Corp together form the world's third-largest automaking group by sales, a position referenced in the reporting of the results.
Key figures released by Hyundai include the operating profit of 2.5 trillion won for the January-March quarter and revenue of 45.9 trillion won. For reference within the report, the currency conversion cited was $1 = 1,481.1000 won.
The company highlighted two primary headwinds for the quarter: softer demand in the Middle East market and the recall associated with the Palisade SUV. Those items were presented as contributors to the decline in operating profit compared with the same quarter a year earlier.
While revenue rose modestly year-on-year, the decline in operating profit indicates that costs, recalls, or regional demand shifts reduced overall profitability for the quarter. The operating profit result was in line with the LSEG SmartEstimate figure reported alongside the company numbers.
Investors responded by sending Hyundai shares lower after the announcement, reflecting the market's reaction to the combination of the profit decline, the Palisade recall, and the demand softness noted in the Middle East.
Data summary:
- Operating profit (Q1): 2.5 trillion won, down from 3.6 trillion won year-on-year
- LSEG SmartEstimate: 2.5 trillion won
- Revenue (Q1): 45.9 trillion won, up 3.4% year-on-year
- Share movement: down about 2% after the announcement
- Currency reference: $1 = 1,481.1000 won