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Tuesday, 28 July 2026

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Hyundai Motor reports 21% drop in Q2 operating profit, misses forecasts

Hyundai Motor reports 21% drop in Q2 operating profit, misses forecasts

SEOUL, July 23 (Reuters) - Hyundai Motor reported a 21% fall in second-quarter operating ‌profit on Thursday, missing analysts' estimates, ‌as weaker vehicle sales, production disruptions and higher costs ​outweighed support from a weaker won.

Hyundai, which together with affiliate Kia Corp is the world's third-biggest automaking group by sales, posted operating ‌profit of 2.9 ⁠trillion won ($1.98 billion) for the April-June period, compared with 3.6 trillion ⁠won a year earlier.

That compared with a 3.2 trillion won forecast by LSEG SmartEstimate, which ​is weighted ​toward analysts who ​are more consistently ‌accurate.

Hyundai Motor said revenue rose 2% from a year earlier to 49.2 trillion won.

Shares of Hyundai Motor were trading up 2% after the earnings announcement.

Hyundai forecasts macroeconomic uncertainty will ‌persist and competition in ​the industry will be tougher.

Its ​weak performance ​underscores wider challenges facing the auto ‌industry, as carmakers contend ​with rising ​energy and raw material costs as well as supply chain disruptions linked to ​U.S. tariffs ‌and conflict in the Middle East.

(Reporting by Heekyong Yang and Heejin ​KimEditing by Ed Davies)