SEOUL (Reuters) – South Korea’s Hyundai Motor ( OTC: ) reported a 17% drop in fourth-quarter operating profit on Thursday, a bigger drop than analysts had expected, as it spent more on promotions in a slowing auto market.
Hyundai, which along with subsidiary Kia is the world’s third-biggest carmaker by sales, reported an operating profit of 2.8 trillion won ($1.95 billion) for October-December, compared with 3.4 trillion won in the same period last year.
The result was lower than the 3.2 trillion won average of 24 analysts’ estimates compiled by LSEG SmartEstimate, which is weighted by analysts’ estimates that are more consistently accurate.
Hyundai shares rose 1.4% after earnings results.
During the quarter, Hyundai’s global retail sales fell as solid sales in the United States and India were offset by weak demand in South Korea, Europe and China.
A weaker local currency against the U.S. dollar helped boost Hyundai’s earnings at home, but also increased foreign debt and related finance costs, weighing on profits, analysts said.
($1 = 1436.4200 Won)
