Hyundai Motor closes 3 trillion won, Kia exceeds 2 trillion won ‘surprise performance’… Highest sales and net income
The combined annual sales of the two companies are likely to exceed 200 trillion won… Annual operating profit expected to be all-time high
Sales volume decreased, but the effect of selling a lot of expensive cars at a high exchange rate and reducing incentives
Hyundai Motor Group and Kia Motors, the two largest automakers in the Hyundai Motor Group, recorded the largest-ever profits in the second quarter of this year.
The two companies released their record-breaking grades through public announcements and conference calls over two days from the 21st to the 22nd.
This is the result of overcoming various internal and external negative factors in a situation in which the global automobile market is in a slump due to a supply shortage of semiconductors for vehicles and an increase in raw material prices.
This is thanks to the combination of the high exchange rate and reduced incentives in addition to the improvement of the ‘mix’ (composition ratio by vehicle type) that sells a lot of expensive cars.
◇ Combined operating profit of 5.2 trillion won and sales of 57.8 trillion won… Annual sales of 200 trillion won ‘shortly’
Hyundai Motor stopped the start on the 21st the day before.
Operating profit in the second quarter of this year on a consolidated basis was tentatively counted at 2.9798 trillion won, close to 3 trillion won.
This is higher than the previous record of 2.53 trillion won in the second quarter of 2012.
The operating profit this time exceeded the market forecast (2.43 trillion won) compiled by Yonhap Infomax by 22.4%, and was an all-time ‘earning surprise’ (surprising performance).
The operating profit margin was 8.3%, the highest in eight years since the second quarter of 2014 (9.2%).
The sales volume was 97,6,350 units (182,298 domestic and 794,52 overseas), down 5.3% from the second quarter of last year.
However, sales increased to 35.99 trillion won.
It was an all-time high, easily surpassing the previous highest quarterly sales in the fourth quarter of last year (31.265 trillion won).
Ordinary profit and net profit for the year were 3.8888 trillion won and 3.84.8 trillion won, respectively.
Net profit increased by 55.6% compared to the same period last year.
On this day, Kia announced its record-breaking performance.
Operating profit in the second quarter was recorded at 2.2 trillion won, surpassing the 2 trillion won mark for the first time.
It is the highest record in history, once once more exceeding the previous highest operating profit (1.665 trillion won) achieved in the first quarter.
It increased by 50.2% from the operating profit of the second quarter of last year (1.48 trillion won).
Kia’s operating profit was also recorded as a ‘surprising performance’ by 15.4%, exceeding the market estimate of 1.93 trillion won, compiled by Yonhap Infomax.
The operating profit margin was 10.2%.
The double-digit operating profit margin was also the first time in 10 years, breaking the previous record of 9.8% in the second quarter of 2012.
The sales volume decreased by 2.7% from the same period last year to 733,749 units (143,868 domestic and 592,881 overseas).
Kia’s sales also fell to 21.876 trillion won, surpassing the 20 trillion won mark for the first time.
This is an increase of 19.3% from the same period last year.
The previous highest quarterly sales were 18.35 trillion won in the first quarter.
Net income also recorded 1.88 trillion won, the largest ever and an increase of 40.1% from the same period last year.
The previous highest net profit was 1.34 trillion won in the second quarter of last year.
The combined sales of the two companies in the second quarter were 57875.9 billion won, and the operating profit was 5,213.9 billion won.
In the first half of this year, sales reached 1065 trillion won and operating profit reached 8,749.3 billion won.
If the trend in the first half continues in the second half, both annual sales and operating profit are expected to record record highs this year.
The previous maximum annual sales were 187.473 trillion won last year, and the operating profit was 11.95 trillion won in 2012.
The industry predicts that Hyundai Motor and Kia will be able to open an era of 200 trillion won in annual sales this year.
◇ Maximize profits by improving mix and reducing incentives
Both companies cited ‘mix improvement’ as a key factor, which saw sales increase and operating profit record the highest in a situation where sales volume decreased.
In the case of Hyundai, sales of sports utility vehicles (SUVs) and luxury brand Genesis increased.
Expensive recreational vehicles (RVs), Genesis and eco-friendly vehicles took the place of small passenger cars, which reached 59% 10 years ago, compared to the second quarter of 2012, when the previous record high operating profit was recorded.
Compared to the second quarter of last year, the proportion of SUVs in total sales increased by 4.7% from 47.3% to 52.4%, and electric vehicles also increased by 49.1% from 3.5% to 5.4%.
The top-end sedan, the Genesis G90, also saw a 197.5% increase in sales compared to the same period last year.
Kia also benefited from the improvement of the mix.
The average price of one vehicle was 31.4 million won, entering the 30 million won range for the first time, and sales of eco-friendly cars, which are considered high value-added vehicles, increased significantly.
Thanks to the rapid sales expansion of EV6, the first dedicated electric vehicle, the company sold 133,000 eco-friendly cars, a 78.9% increase over the same period last year.
The proportion of eco-friendly cars in total sales rose 8.7 percentage points (p) to 17.7%.
In particular, the proportion of EV sales in the domestic and Western European markets expanded to 9.9% and 12.5%, respectively.
The US also sold 10,000 electric vehicles, 5.3 times more than in the same period last year, increasing the proportion of electric vehicles sold by regarding six times from 0.9% to 5.5%.
Reduced incentives is also one of the reasons for the strong performance.
Both companies reduced the incentives given to dealers as their brand value and competitiveness increased as their product merchandising was recognized.
The high exchange rate also helped boost earnings at a time when both companies sold more overseas sales than domestic sales.
The two companies explained, “The average won/dollar exchange rate in the second quarter was 1,260 won, up 12.3% from the same period last year, contributing significantly to sales expansion and improved profitability.”
◇ The outlook for the second half of the year… “The external environment is unstable while the semiconductor supply and demand situation is improving”
Both companies predicted that production will gradually expand in the second half of this year as the supply shortage of semiconductors gradually improves.
However, due to geopolitical influences such as the Russia-Ukraine crisis and the US-China confrontation, raw material prices soared, Corona 19 showed signs of re-spreading, and the uncertain business environment is expected to continue due to the followingmath of a decrease in purchasing sentiment due to inflation and an increase in interest rates. .
Hyundai Motor has introduced major measures such as strengthening the electric vehicle lineup through the release of the IONIQ 6 in the third quarter of this year, maximizing production and sales, expanding market share and defending profitability by improving the mix.
Kia also plans to release the EV6 GT, a high-performance electric vehicle, in Korea in the second half of the year, the Telluride commercialization improvement model in the US, the new Sportage, and the new Niro in Europe.
A Kia official said, “We plan to maximize profitability by continuously upgrading the product and trim mix and maintaining a pricing policy that responds to the improved brand and marketability.”
/yunhap news
