SEOUL Jan 23 South Korea's Hyundai Motor
posted its first year-on-year fall in quarterly
revenue in nearly three years, as the stronger local currency
weighed and imported rivals gained ground in the Korean home
Hyundai posted a revenue of 21.94 trillion Korean won
($20.56 billion) in the October to December period, a 3 percent
fall from a year earlier. This marked its first year-on-year
sales fall since at least 2011 when new accounting methods were
adopted. Its global shipments went up 0.4 percent to 1.23
million vehicles in the fourth quarter.
However, its net profit jumped 15 percent to 2.06 trillion
won, but missed a consensus forecast of 2.23 trillion. Its
profit a year ago was hurt by provisions to cover the cost of
compensating customers for overstated fuel-economy claims on
some cars sold in the United States and Canada.
The South Korean won gained 3 percent against the dollar and
surged 27 percent versus the Japanese yen in the fourth quarter
from a year earlier, reducing the value of Hyundai Motor's
overseas revenue in local currency terms and lifting Japanese
rivals' price comeptitiveness in the United States and other key
In its lucrative home market of South Korea, Hyundai's sales
slumped as imported rivals like Volkswagen and
Mercedes Benz boosted sales after trade deals.