Hyundai’s quarterly earnings highlighted a major fallback in terms of analyst predications. The company’s global retail sales declined 15% in Q3FY21-22, with a 43% sales reduction in China. Sales in South Korea and North America fell by 8.9% and 7.9%. Europe provided some solace with a 7% increase. After this announcement, Hyundai shares fell by 3.6%, the greatest fall since October 1st, 2021.
According to Hyundai, supply-chain snags along with higher commodity prices are causes that affected the sales. In November, the company stated that iron ore prices jumped by 63% in third quarter, as compared to $165 a ton in the previous fiscal year. Aluminium and copper also rose by 40% and 48% respectively. The global semi-conductor scarcity also furthered the loss. Operating profit in the three months till December fell 6.8% as compared to Q3FY20-21. Figures dropped to $1.28 billion, a significant difference from the predicted 1.79 trillion Won average estimate. According to the executive vice president, Gang Hyun Seo, the chip shortage would ease next quarter and production would regain pre-pandemic levels.
The consolidated net income fell by 57% to 546 billion Won, from the expected 1.47 trillion Won. Nonetheless, sales constituted a whopping 31 trillion Won, witnessing a 6.1% increase. The company aims to increase its sales to 4.32 million vehicles in 2022. It intends to elevate sale of eco-friendly, electric cars to 30%. Its latest Ioniq 6 electric- motor vehicle will be launched in South Korea within the next six months.
