Hyundai Motor sets records, SK Hynix rebounds: Q3

[Courtesy of Hyundai Motor Group]

Hyundai Motor Co. achieved its highest-ever sales and operating profits in the third quarter, expected to outperform other domestic-listed companies in terms of operating profits for three consecutive months. The automaker also saw operating profits surpass 11 trillion won ($8 billion) in just three quarters, setting a likely new record after having exceeded the 9 trillion won mark for the first time in annual operating profits in 2022.

According to the South Korean automaker on Thursday, it recorded 41.27 trillion won in sales in the third quarter, experiencing an 8.7 percent year-on-year increase, with 3.82 trillion won in operating profits during the same period, a significant 146.3 percent increase compared to the same period last year. Both sales and operating profits are at their highest third-quarter figures, with the operating profit margin reaching 9.3 percent. The sharp year-on-year increase in operating profits was partly driven by the base effect of the reserves from the recalls in the third quarter of last year being reflected.

The company’s record performance is attributed to the expansion of high-value-added vehicles centered around its Genesis and sports utility vehicles (SUVs). Improvements in performance after the conversion into won amid a strong U.S. dollar, in addition to increased market shares in key markets, such as the United States, Europe, and India, also played a role. The automaker plans to focus on safeguarding profitability as it faces the seasonal peak in the fourth quarter, while monitoring geopolitical risks in the Middle East and interest rate changes.

“We expect to exceed this year’s annual forecast,” Vice President Seo Gang-hyun said during a conference call, unveiling the automaker’s strategy to stay committed to the growth of electric vehicles, regardless of any “temporary challenges in demand.”

Meanwhile, Korean chipmaker SK hynix Inc. significantly reduced its operating losses in the third quarter amid a prolonged industry slump.

According to the chipmaker’s third-quarter performance unveiled on the same day, SK hynix saw its DRAM business become profitable in the third quarter from a loss in the first quarter, thanks to increased market demand for high-performance memory products, including high bandwidth memory chips. SK hynix’s DRAM shipments in the third quarter increased by about 20 percent compared to the previous quarter.