Hyundai Motor lifts annual income, margin outlook regardless of weak Q3 By Reuters

SEOUL (Reuters) -South Korea’s Hyundai Motor Co raised its full-year income and revenue margin steering on Monday, betting on robust gross sales of luxurious fashions and sport utility automobiles and a plunge within the native foreign money after a lacklustre third quarter.

However in a combined outlook, the corporate mentioned it now expects to promote solely 4.01 million automobiles general this 12 months, down 7% from the 4.32 million beforehand forecast, because the auto business continues to wrestle with provide chain disruptions involving chips and different elements.

“Whereas Hyundai Motor expects a gradual restoration from world chip and element shortages within the fourth quarter, the corporate anticipates exterior uncertainties to proceed, together with inflation, provide chain disruption and fluctuation in uncooked materials costs as a consequence of geopolitical points,” it cautioned in an announcement.

Regardless of that upheaval, the corporate raised its full-year income development forecast to 19-20% from the 13-14% it beforehand anticipated. It now estimates its working revenue margin will probably be 6.5-7.5%, up from the 5.5-6.5% beforehand forecast.

Hyundai, which along with affiliate Kia Corp is the among the many world’s high 5 automakers by gross sales, mentioned third-quarter working revenue fell by 3% as a consequence of a 1.36 trillion gained ($906 million) provision to pay for prices associated to engine high quality points.

The supply, introduced final week, amounted to greater than half of estimated third-quarter internet revenue of two.4 trillion gained drawn from 17 analysts.

Income for the quarter jumped 31% to 37.7 trillion gained, beneath the 36 trillion gained analysts had anticipated.

Shares in Hyundai Motor, which along with affiliate Kia Corp is the among the many world’s high 5 automakers by gross sales, have been down 3% as of 0537 GMT, in contrast with a 0.8% rise within the broader market .

($1 = 1,434.4400 gained)