Hyundai, Kia likely to post operating profit of $5.7 billion

DELHI Delhi: Hyundai Motor and its affiliate Kia reported an operating profit of more than 8 trillion won ($5.7 billion) in the second quarter due to better product mix and production adjustments, a survey showed on Sunday.Hyundai and Kia are estimated to have reported an operating profit of 4.28 trillion won and 3.76 trillion won, respectively, in the three months ended June, according to a Yonhap Infomax survey of local brokerages.The survey showed Hyundai and Kia’s second-quarter operating income rose 1 percent and 11 percent, respectively, compared with the same period last year.Analysts said carmakers’ timely response to the electric vehicle “gap”, particularly their focus on high-end sport utility vehicles such as the GV80 in the U.S. market, and weaker won helped offset the quarter’s bottom line.The dollar averaged 1,370.91 won in the June quarter, from 1,314.68 won a year earlier, according to Bank of Korea data.When converted to the local currency A weaker won boosts the exporter’s dollar-denominated earnings. Both carmakers began strengthening their gasoline hybrid model lineups earlier this year after the global EV market entered a period of stagnation, known as the chasm, that preceded the widespread adoption of EVs. Hyundai’s sales are forecast to rise 4 percent year-on-year to 43.99 trillion won, while Kia’s sales are forecast to rise 5.6 percent to 27.7 trillion won during the same period.