[Earnings Call] Hyundai Motor Lowers Annual Sales Target to 4 Million Vehicles; Investment Also Cut by KRW 1.8 Trillion

Revised annual target after 10 months
"Not a weakening of business competitiveness or earnings power"

Hyundai Motor Company lowered its global sales target for this year to 4 million vehicles from 4,158,300.

Hyundai Motor Company said on October 29 during its third-quarter earnings call that it had cut its global sales target for this year by 158,300 vehicles, to 4 million from 4,158,300. The reduction is about 3.8%.

The domestic sales target was lowered by 36,000 vehicles, to 664,000 from 700,000. The overseas sales target was also cut by 122,300 vehicles, to 3,336,000 from 3,458,300.

The overseas target adjustment accounts for about 77% of the total reduction in the sales target. The reduction in the domestic target was about 5.1%, higher than the roughly 3.5% cut in the overseas target. Hyundai Motor Company revised the sales target it announced in January, about 10 months later.

It also lowered its operating margin guidance from 6.3–7.3% to 5.5–6.5%. Its investment plan was cut to KRW 16 trillion, down KRW 1.8 trillion from the previous KRW 17.8 trillion.

A Hyundai Motor Company official said, "This guidance adjustment does not indicate a weakening of our fundamental business competitiveness or earnings power. Rather, it is a realistic adjustment to reflect in our annual outlook factors that were difficult to anticipate, such as rising raw material prices and production disruptions."

Meanwhile, Hyundai Motor Company's consolidated revenue in the third quarter was KRW 45.1102 trillion, down 3.4% from the same period last year. Operating profit rose 5.5% year over year to KRW 2.6772 trillion. The operating margin increased to about 5.9%, from approximately 5.4% in the same period last year. Net income fell 24.2% year over year to KRW 1.9317 trillion.

Cumulative revenue for the first three quarters was KRW 140.2645 trillion, up 0.6% from the same period last year. In contrast, cumulative operating profit fell 17.7% to KRW 8.0428 trillion.

This content was produced with the assistance of AI translation services.