Hyundai Motor Q1 net up 0.2% amid US tariff uncertainty
The headquarters of Hyundai Motor in Seoul / Courtesy of Hyundai Motor
Hyundai Motor Korea's leading automaker, said Thursday its first-quarter net profit rose 0.2 percent from a year earlier, amid growing uncertainties stemming from U.S. President Donald Trump's sweeping tariff policies.
Net profit for the three months ended March came to 3.38 trillion won ($2.4 billion), up from 3.376 trillion won during the same period last year, the company said in a regulatory filing.
Operating profit increased 2.1 percent on-year to 3.63 trillion won in the March quarter, compared with 3.56 trillion won a year earlier. Sales rose 9.2 percent to 44.4 trillion won, up from 40.66 trillion won.
"Increased sales of value-added sport utility vehicles (SUVs) and the won's weakness against the dollar helped the company achieve an operating profit margin of 8.2 percent in the first quarter," the company said.
In the January-March period, Hyundai sold a total of 1,001,120 vehicles in global markets, down 0.6 percent from the previous year.
Looking ahead, the company cautioned that rapidly changing trade environments, driven by recent U.S. tariff measures, could lead to a potential downturn in the real-sector economy.
The Trump administration began imposing country-specific reciprocal tariffs, including 25 percent duties on Korea, on April 9, though the measures were paused for 90 days just hours later.
A separate 25 percent tariff on automobiles took effect on April 3, with tariffs on certain auto parts expected to follow no later than May 3.
To mitigate risks related to tariffs, Hyundai Motor Group plans to increase its U.S. production capacity to 1.2 million units per year by expanding output at its plants in Alabama and Georgia, as well as at the new Hyundai Motor Group Metaplant America electric vehicle (EV) facility, also located in Georgia.
It has also decided to freeze the prices of all new vehicles sold in the U.S. through early June, a move aimed at easing consumer concerns over potential price increases.
As part of efforts to enhance shareholder value, Hyundai announced plans to cancel 916 billion won worth of its own shares on April 30 under its broader "Value-Up" program.