Hyundai Motors Q1 profit drops
Hyundai Motor Co, mired in a deepening domestic probe into a cash-for-favours scandal, posted a 37 per cent drop in quarterly profit.india Updated: May 04, 2006 12:33 IST
Hyundai Motor Co, mired in a deepening domestic probe into a cash-for-favours scandal, posted a 37 per cent drop in quarterly profit on Thursday as a stronger won currency eroded the value of overseas sales.
Hyundai, South Korea's top auto maker, earned 318.8 billion won ($341.3 million) in net profit in the first quarter to March 31, compared with a 509.8 billion profit a year ago.
The result missed a 473.1 billion won profit forecast from seven analysts polled by Reuters.
The result, which was originally scheduled for last week, came after Hyundai Motor Chairman Chung Mong-koo was arrested on Friday on charges of misusing company funds.
Hyundai, which controls half the country's car market, is expected to show earnings improvements over the coming quarters, helped by increasing sales of higher-end models such as its Sonata sedan.
Shares in Hyundai, South Korea's seventh-largest stock with a market value of about $18.8 billion, fell 16 per cent in the first quarter, against the broader market's 1.4 per cent drop.