Hyundai Motor’s Q2 net profit jumps 15%, slightly misses expectations

SEOUL (Reuters) -South Korea’s Hyundai Motor Co reported on Wednesday a 15% rise in second-quarter profit helped by solid sales of high-margin sport utility vehicles and increased output following an easing in global semiconductor shortages.

Hyundai Motor reported a net profit of 3.2 trillion won ($2.50 billion) for the April-June period, versus a 2.8 trillion won profit a year earlier.

That compared with a 3.3 trillion won profit estimate from 19 analysts compiled by Refinitiv SmartEstimate, weighted toward analysts that are more consistently accurate.

Revenue rose 17% on-year to 42 trillion won.

Tight global supply of auto chips that began during the COVID-19 pandemic has constrained vehicle production, buffering the auto industry from overall economic slowdown that has dampened demand for most consumer goods.

But economic uncertainty threatens to put pressure on their margin growth in coming quarters, as supply chain bottlenecks ease further, allowing production to rise just as high interest rates start cooling off vehicle demand.

Tesla (NASDAQ:) CEO Elon Musk signalled last week that it would cut prices again on electric vehicles in “turbulent times” to boost sales.

($1 = 1,279.1700 won)

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