Hyundai missing Q1 earnings targets blamed on slow US sales

[Sal Collaziano]

Filed under: China, Hyundai, Earnings/Financials



Slow US growth is hampering profits at Hyundai. In its first quarter financial statement, the Korean automaker reported a profit of 1.93 trillion won ($1.86 billion). According to Reuters, this is less than analysts' expectations and nearly the same as last year.

According to the report, US sales fell by 3 percent in Q1 2014. To make matters worse, the high value of the South Korean currency caused lower profits on models exported from there. On the bright side, Hyundai's Chinese sales rose by 9 percent, according to Reuters. It's also working on building a fourth factory there.

The company has had a rough time in the US throughout the quarter. John Krafcik, the CEO of Hyundai of America, stepped down on January 1, and the company was already predicting slow growth in sales for 2014. Falling quality scores for the Sonata and Elantra aren't helping matters either. However, there may be hope on the way. The second-generation Genesis Sedan was introduced to the US in Detroit, and the redesigned Sonata was recently shown in New York. Successful launches of these important models could prove crucial.Hyundai missing Q1 earnings targets blamed on slow US sales originally appeared on Autoblog on Thu, 24 Apr 2014 15:45:00 EST. Please see our terms for use of feeds.



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[thompithak3182]

filed under: china, hyundai, earnings/financials



slow us growth is hampering profits at hyundai. In its first quarter financial statement, the korean automaker reported a profit of 1.93 trillion won ($1.86 billion). According to reuters, this is less than analysts' expectations and nearly the same as last year.

According to the report, us sales fell by 3 percent in q1 2014. To make matters worse, the high value of the south korean currency caused lower profits on models exported from there. On the bright side, hyundai's chinese sales rose by 9 percent, according to reuters. It's also working on building a fourth factory there.

The company has had a rough time in the us throughout the quarter. John krafcik, the ceo of hyundai of america, stepped down on january 1, and the company was already predicting slow growth in sales for 2014. falling quality scores for the sonata and elantra aren't helping matters either. However, there may be hope on the way. The second-generation genesis sedan was introduced to the us in detroit, and the redesigned sonata was recently shown in new york. Successful launches of these important models could prove crucial.hyundai missing q1 earnings targets blamed on slow us sales originally appeared on autoblog on thu, 24 apr 2014 15:45:00 est. Please see our terms for use of feeds.



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i was on another thread where a woman was thinking about buying a genny and i was taking about hyundai profits and sales and i knew it wasnt all that great. Anyways, i was trying to tell her that its a great time to buy one right now and i got mine for 8k off the price tag for a brand new 13 base model. This article just validates my point. But i still love my genny and i wish there were more mods for the 3.8

 

[Mark_888]

i was on another thread where a woman was thinking about buying a genny and i was taking about hyundai profits and sales and i knew it wasnt all that great. Anyways, i was trying to tell her that its a great time to buy one right now and i got mine for 8k off the price tag for a brand new 13 base model. This article just validates my point. But i still love my genny and i wish there were more mods for the 3.8

I think the discounts on the 2013/2014 Genesis sedans right now have a lot to do with the completely new 2015's coming out in a couple of weeks.