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Hyundai completes US battery venture, boosts first quarter profit

Hyundai reports a net profit of 3.3 trillion won ($2.47 billion) for the January-March period, thanks to an easing global chip shortage and increased auto production driven by high-margin demand. Did. Crossovers are still strong.

Sales increased by 25% to KRW 37.8 trillion, and the automaker’s gross profit margin was 20.4%, better than the 18.2% demanded by the market.Operating margin reached 9.5%

Hyundai said the strong sales were largely due to improved production due to stable supply of chips and components globally. He added that there were “persistent external factors such as rising inflation and fluctuations in raw material costs and interest rates due to geopolitical issues.”

Hyundai’s global retail sales increased 3.6% in the first quarter. Sales in Europe he increased by 1.5% and in North America by 13%. In China, it fell 8%. Russia, where Hyundai has a plant in St. Petersburg, recorded a 72% decline.

The global chip shortage that has plagued automakers since late 2020 is not “completely gone,” but Hyundai’s factories have been operating at 100% as planned since April, according to Hyundai’s Kang. Vice President Hyun Seo said in a conference call.

“We don’t think the chip shortage is at a level that will affect our production,” he said.

Eugene Investment & Securities analyst Lee Jae-il said, “In addition to strong demand for automobiles, raw material costs have remained stable since the end of last year, contributing to Hyundai’s improved profitability. ‘ said.

Hyundai and Kia are competitive in the U.S. based on pricing and favorable exchange rates, he added.

Seo Gang Hyun, head of Hyundai’s planning and finance department, said SUVs with conventional engines and luxury Genesis vehicles still make up the bulk of the company’s U.S. sales.

“So the impact of the Inflation Control Act won’t be as big as you’re concerned,” he told analysts on the earnings call after being questioned about the issue.

Hyundai and Kia Motors on Tuesday plan to invest a combined KRW 1.5 trillion to acquire more stakes in self-driving mobility company 42dot to maintain control and boost the competitiveness of their businesses. said there is. Hyundai completes US battery venture, boosts first quarter profit

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