South Korea’s largest automaker, posted a 48 percent increase in fourth- quarter profit as the company boosted sales in the U.S. and China amid rising global auto demand.
Net income increased to a record 1.4 trillion won ($1.3 billion) in the three months ended 2010’s Dec. 31 from 945.5 billion won a year earlier, the Seoul-based carmaker said today in a regulatory filing. Analysts expected a 1.41 trillion won profit, according to the average of 16 estimates compiled by Bloomberg. Revenue climbed 3.1 percent to 9.94 trillion won. Hyundai lured buyers with new versions of its Sonata sedans, Elantra compacts and Tucson sport-utility vehicles while a strong yen crimped the competitiveness of Japanese rivals including Toyota Motor Corp. The Korean company’s US sales jumped 38 percent from a year earlier to 128,181 vehicles in the quarter, while its deliveries climbed 22 percent in China and 6.5 percent in Europe.
“Hyundai’s brand value and quality have improved with the launch of various new models,” Chang In Whan, president of KTB Asset Management in Seoul, said before the announcement. “Hyundai will likely sustain its growth, but it may face a challenge from a strengthening won later this year,” said Chang, whose company manages the equivalent of $6.7 billion in assets including the carmaker’s stock.
Hyundai expects to sell 3.9 million vehicles in 2011, the company said. Its global market share last year was 5.2 percent. Fourth-quarter operating profit, or sales minus the cost of goods sold and helloistrative expenses, rose 8.6 percent from a year earlier to 908.8 billion won, Hyundai said. Hyundai rose 0.25 percent to 198,800 won as of 1:40 p.m. in Seoul trading, while the benchmark Kospi Index gained 0.2 percent. The stock has gained 14 percent in 2011.
