Hyundai Motor reports 21% drop in Q2 operating profit, misses forecasts

Hyundai Motor's operating profit plummeted by 21% in the second quarter, falling short of market expectations. The South Korean automaker announced its operating profit for the April-June period was 2.95 trillion won ($2.28 billion), a significant drop from the 3.73 trillion won recorded in the same quarter last year.

The company's financial performance was impacted by various factors, including increased costs and supply chain disruptions. Despite the decline, Hyundai Motor's sales revenue saw a slight increase of 1.5% year-on-year, reaching 34.03 trillion won. This indicates that while the company is selling more, its profitability has been squeezed.

Analysts had anticipated a stronger performance, with the consensus forecast predicting an operating profit of around 3.17 trillion won. The miss suggests that the challenges faced by the automotive industry, such as rising raw material prices and semiconductor shortages, continue to weigh heavily on manufacturers like Hyundai.