Hyundai Motor announced a 2% increase in its operating profit for the first quarter of 2023, driven by a weaker South Korean won and U.S. consumers making early purchases before potential tariffs.
For the period from January to March, Hyundai posted an operating profit of 3.6 trillion won ($2.52 billion), up from 3.56 trillion won in the same quarter last year.
The result was in line with analysts’ expectations, as the consensus estimate stood at 3.5 trillion won, based on a survey of 17 analysts by LSEG SmartEstimate.
Hyundai and its affiliate Kia, which rank as the third-largest global automaker group by sales, have been expanding their market share in the U.S. since the pandemic. However, they remain sensitive to the risks posed by potential U.S. tariffs. The two companies generate about a third of their global sales from the U.S. market, where imports make up around two-thirds of total car sales, according to data from Korea Investment & Securities.
Following the earnings announcement, Hyundai’s shares fell by 0.4%, slightly underperforming the broader market’s 0.2% decline.
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