Hyundai Motor's Q2 operating profit exceeds 4 trillion won for 1st time

By Lee Kyung-min

Hyundai Motor said Wednesday that its second-quarter revenue increased 17.4 percent year-on-year to 42.2 trillion won ($33 billion), and operating profit rose 42.2 percent to 4.2 trillion won. This was backed by continued strong demand for its electric vehicles (EV), SUVs and luxury models around the world.

The company's operating profit margin for the period hit 10 percent, the highest since the second quarter of 2013. Its net profit including non-controlling interest was also up by 8.5 percent to 3.35 trillion won.

Hyundai Motor sold over 1.05 million vehicles around the globe in the second quarter, an 8.5 percent increase from a year earlier. Sales in markets outside of Korea were up by 7.6 percent to 854,210, and sales in Korea increased by 12.7 percent to 205,503.

The overall sales increase, especially for SUV and Genesis luxury models, as well as favorable exchange rates, helped lift revenue in the second quarter.

Hyundai Motor also sold nearly 78,000 EVs in the period, an increase of 47 percent from a year earlier.

The company expects to strengthen sales momentum through production improvements as chip and component supplies stabilize worldwide, cementing demand for the brand.

It will enhance profitability despite global uncertainties, such as interest rate fluctuations and accelerating inflation.

Hyundai Motor maintains its annual sales target of 4.32 million cars and investment plans totaling 10.5 trillion won.

The firm said it will continue its dividend policy of guaranteeing a payout ratio of 25 percent or higher as well as quarterly dividend of 1,500 won per common share starting from the second quarter, the firm said during a conference call.

“We will secure robust profitability and achieve its annual guidance through increased sales, enhanced product mix with more SUVs and luxury models, and production rate recovery ― factors that will translate into a high dividend payout ratio,” a Hyundai official said.

“The company will continue to strengthen its global leadership position in eco-friendly EVs including IONIQ 6 and IONIQ 5 and more models, including Hyundai Kona EV, Genesis GV60, Electrified G80 and Electrified GV70 in markets around the world.”

It launched the IONIQ 5 N, its first high-performance EV model, to further solidify its global EV leadership. In addition, IONIQ 6 will be introduced in more markets around the globe.

Hyundai Motor expects its fifth-generation Santa Fe midsize SUV will strengthen its solid sales momentum this year.