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Operating Profit of Hyundai Motor Company Stood at 6.3 Trillion Won in 2015

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Falling Profitability
Hyundai Motor’s profit-to-sales ratio decreased by 1.5 percentage points to 6.9% in 2015 compared to the previous year.

Hyundai Motor Company announced on January 26 that it sold 4,963,023 vehicles last year to post 91.9587 trillion won in sales, 6.3579 trillion won in operating profit and 6.5092 trillion won in current income. The sales increased 3% from a year ago whereas the others fell 15.8% and 14.9%, respectively. The profit-to-sales ratio decreased by 1.5 percentage points to 6.9%, too.

The automaker’s domestic sales volume went up by 4.2% to 712,313 while the overseas sales volume edged down by 0.6% to 4,250,710. “Competition became even more intense in major markets and our profitability was affected by the rapid depreciation of the currencies of the countries where our manufacturing facilities are located,” the company explained.

The carmaker said that the uncertainties surrounding the global car market are likely to linger on throughout this year. As examples, it mentioned the slowdown of the Chinese economy, geopolitical risks, low international oil prices and financial instabilities in emerging markets.

The company also said that it would sell 693,000 and 4,317,000 vehicles in and out of Korea this year, respectively. To this end, it is going to release its latest models such as the Avante, EQ900 and Ionic in more countries while increasing the supply of luxury cars and SUV in order to better respond to market demands.


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