Hyundai released its first-quarter results on Monday, which showed a 19% hike in net profit despite sales decreasing by almost ten percent. The automaker said various factors played a role in the increased profit. At the same time, semiconductor chip shortages and COVID-19 shutdowns in China hindered its sales.
Net revenue for Q1 totaled approximately $1.3 billion, which was lower than analyst projections but still a significant increase, and shares also slightly increased at the end of the quarter.
On Monday, Hyundai said other reasons revenue was able to offset rising costs of raw materials and supply chain issues included “robust sales of SUV and Genesis luxury models, declining incentives, and a favorable foreign exchange environment.” The won (₩) is currently weak compared to the U.S. dollar, which reportedly contributed significantly to the profit increase.
Seo Gang Hyun, Hyundai’s Executive Vice President, also said the automaker would closely monitor Ukraine’s situation. Operations at its Russian plant are suspended with no indication of when they will resume. Hyun said the company “will consider delaying executions of planned investments this year and new car launches in Russia to enhance [Hyundai’s] Russia operation’s profitability.”
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