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26.10.2020

Hyundai swings to quarterly loss in Q3

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The firm posted an operating loss of 313.82 billion won

Stocks impacted: Hyundai Motor Co (005380)

South Korea's automaker swung to a net loss in the third quarter, missing market estimates by a wide margin. The company posted a net loss of 188.80 billion won ($167.3 million), compared with a net profit of 460.50 billion won in the same quarter a year earlier. Third-quarter revenue rose 2.3% to 27.576 trillion won, but the firm posted an operating loss of 313.82 billion won. Still, operating loss was not as deep as expected as the company registered solid sales amid the increased demand in the United States and emerging markets such as India. Furthermore, excluding quality costs, the figure would have been 1.8-trillion-won profit. Hyundai booked 2.1 trillion won to cover charges related to engine defects that increased the risk of stalling and fire. Meanwhile, Hyundai Motor India unveiled the design sketches of the all- all-new i20 ahead of its expected launch in India next month. Despite a mostly weak quarterly report, Hyundai stocks rose 2.7% on Monday.

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