Hyundai Motor Korea Posts Record Gains in 2004
Hyundai Motor Co. posted an increase in sales but a decrease in operating profit in 2004.
South Korea’s largest automaker announced that it recorded revenues of $27 billion in 2004, up 10 percent from a year earlier. Operating profit though down 11.4 percent. In the fourth quarter 2004 , HMC achieved the highest quarterly sales of the year with more than W7.5 trillion, but its operating profit dropped some 26 percent to W344 billion due to a stronger won and higher steel prices.
Hyundai said its revenues saw an increase last year despite sluggish domestic sales as exports grew. But it added its operating profit fell because of higher marketing costs to counter a slump in domestic consumer spending, while export profits decreased due to the strong Korean won. Ordinary income rose 6 percent to W2.489 trillion, while net income saw a 2 percent increase with W1.785 trillion.
Hyundai Securities analyst Song Sang-hun said that after the last fourth quarter, the company could see its operating income fall again in the first quarter this year as the won recently appreciated further against the greenback.
Hyundai plans to increase exports of the profitable recreational vehicles (RV) and sedans and step up domestic sales by introducing new models this year. It is targeting sales of 2.401 million units this year, revenues of W28.4 trillion and operating profit of W2.4 trillion.
South Korea’s largest automaker announced that it recorded revenues of $27 billion in 2004, up 10 percent from a year earlier. Operating profit though down 11.4 percent. In the fourth quarter 2004 , HMC achieved the highest quarterly sales of the year with more than W7.5 trillion, but its operating profit dropped some 26 percent to W344 billion due to a stronger won and higher steel prices.
Hyundai said its revenues saw an increase last year despite sluggish domestic sales as exports grew. But it added its operating profit fell because of higher marketing costs to counter a slump in domestic consumer spending, while export profits decreased due to the strong Korean won. Ordinary income rose 6 percent to W2.489 trillion, while net income saw a 2 percent increase with W1.785 trillion.
Hyundai Securities analyst Song Sang-hun said that after the last fourth quarter, the company could see its operating income fall again in the first quarter this year as the won recently appreciated further against the greenback.
Hyundai plans to increase exports of the profitable recreational vehicles (RV) and sedans and step up domestic sales by introducing new models this year. It is targeting sales of 2.401 million units this year, revenues of W28.4 trillion and operating profit of W2.4 trillion.
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