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MarketScreener Homepage  >  Equities  >  Korea Stock Exchange  >  Hyundai Motor Company    A005380   KR7005380001

HYUNDAI MOTOR COMPANY

(A005380)
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Hyundai Motor swings to quarterly loss as engine issues batter earnings

10/26/2020 | 12:21am EST

* Hyundai swings to net loss in Q3 as quality costs weigh

* Firm apologises for having repeated quality issues

* Shares rally on firm sales performance

SEOUL, Oct 26 (Reuters) - South Korea's Hyundai Motor Co said on Monday it swung to a net loss for July-September, missing market estimates by a wide margin, as costs related to engine quality issues and recalls smashed what would otherwise have been strong earnings.

Hyundai, the world's fifth-biggest automaker when combined with affiliate Kia Motors Corp, reported a net loss of 336 billion won ($297.72 million). The average of 12 analyst estimates complied by Refinitiv was 1.2 trillion won in profit.

The automaker said it booked 2.1 trillion won to cover charges related to engine defects that increased the risk of stalling and fire. The years-long quality problems have cost Hyundai and Kia nearly $5 billion and left the pair subject to a probe by U.S. authorities over the manner of their recalls.

"Third-quarter results reflect engine-related provision expenses as the company took preemptive measures to ensure customer safety and cover any possible future increase in quality-related expenses," Hyundai said in a statement.

"We sincerely apologise to our shareholders and investors for having repeated quality cost issues over three quarters since 2018," an executive told an earnings briefing.

Operating loss for the third quarter was 314 billion won. Excluding quality costs, the figure would have been 1.8 trillion won profit. Revenue rose 2.3% on year to 27.6 trillion won.

Analysts said the operating loss was not as deep as expected as Hyundai enjoyed firm sales in the quarter backed by increased demand in the United States and emerging markets such as India.

Its stock rose as much as 4.2% after the announcement versus a 0.3% fall in the benchmark KOSPI in afternoon trade.

($1 = 1,133.4500 won) (Reporting by Heekyong Yang and Joyce Lee; Additional reporting by Joori Roh; Editing by Christopher Cushing and Kim Coghill)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
HYUNDAI CORPORATION 0.58% 17250 End-of-day quote.8.15%
HYUNDAI MOTOR COMPANY -0.96% 259000 End-of-day quote.34.90%
KIA MOTORS CORPORATION 5.04% 87600 End-of-day quote.40.38%
KOSPI COMPOSITE INDEX 0.72% 3111.77 Real-time Quote.7.63%
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Financials
Sales 2020 104 009 B 95,0 B 95,0 B
Net income 2020 1 857 B 1,70 B 1,70 B
Net Debt 2020 57 402 B 52,4 B 52,4 B
P/E ratio 2020 35,4x
Yield 2020 1,45%
Capitalization 54 521 B 49 540 M 49 778 M
EV / Sales 2020 525x
EV / Sales 2021 474x
Nbr of Employees -
Free-Float 71,0%
Chart HYUNDAI MOTOR COMPANY
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Hyundai Motor Company Technical Analysis Chart | A005380 | KR7005380001 | MarketScreener
Technical analysis trends HYUNDAI MOTOR COMPANY
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 27
Average target price 279 148,15 KRW
Last Close Price 259 000,00 KRW
Spread / Highest target 54,4%
Spread / Average Target 7,78%
Spread / Lowest Target -45,9%
EPS Revisions
Managers and Directors
NameTitle
Eui-Sun Chung Chairman & Co-Chief Executive Officer
Won-Hui Lee Co-President, Co-CEO & Director
Eon-Tae Ha Co-Chief Executive Officer & Director
Chang Jae-hoon Co-President & Co-Chief Executive Officer
José Munoz Global Chief Operating Officer
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1st jan.Capitalization (M$)
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