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Hyundai Motor says 4th quarter profit tumbles 22 percent

Hyundai Motor says 4th quarter profit tumbles 22 percent

Hyundai Motor Co., the world's sixth-largest automaker, reported Thursday fourth-quarter profit declined 22 percent amid strength in the South Korean won and sales declines due to strikes.
Hyundai Motor earned 537.2 billion won (US$574 million; euro443 million) in the three months ended Dec. 31 compared with the same period the year before, the company said in a statement, its fourth straight quarterly net profit decline.
The earnings capped a year of turmoil for South Korea's largest automaker, which included the jailing of Chairman Chung Mong-koo on embezzlement and breach of trust charges and its worst ever annual production losses due to annual labor troubles.
"Profit (in 2006) declined because of the exchange rate, oil prices and the worsening management environment," Hyundai said in the statement. "The continuous weakening of the U.S. dollar and euro as well as strikes resulted in decreased sales."
Sales during the quarter fell 6.6 percent to 7.584 trillion won (US$8.1 billion; euro6.2 billion) from 8.117 trillion won a year earlier. A total of 11 analysts surveyed by Dow Jones Newswires had forecast sales of 7.653 trillion won.
The fourth-quarter profit result, however, came in better than expected. The analysts forecast that the company would post a net profit of 454.8 billion won (US$485 million; euro375 million).
Shares in Hyundai Motor, which released earnings before the stock market closed, fell 1.5 percent to 66,000 won US$70; euro54) with just minutes left in the trading session.


Updated : 2021-04-15 05:16 GMT+08:00