Hyundai Says Profit Falls for Fourth Straight Quarter

Hyundai Motor Co., the world's sixth-largest automaker, said Thursday that its net profit fell for the fourth straight quarter amid strength in the South Korean won and production losses due to strikes.

South Korea's No. 1 automaker said its net profit in the three months through December fell 22 percent to 537.2 billion won ($574 million).

"Mostly, the high won eroded our profitability," said Hyundai spokesman Jake Jang, who added that expensive prices for raw materials like steel and equity losses from its investment in affiliate Kia Motors Corp. also played a role.

Hyundai also suffered partial strikes and work slowdowns during the quarter, when its walkout-prone labor union laid down tools in solidarity with other workers over issues such as opposition to a proposed free trade agreement between South Korea and the United States.

The company said that a total of 11 days of strikes during the quarter cost it 15,414 vehicles in lost production worth about 226.3 billion won ($242 million) in sales.


Read Article

BMW_DRVR - 1/25/2007 4:15:01 PM

+1 Boost

They should be happy they are making a profit because the big 3 in the US are losing and i'd take most of there cars over a hyundai.

Lexus - 1/25/2007 7:15:43 PM

+1 Boost

I thought they are planning to over Toyota in the next five years. What happen? Kia need to wakeup and smell the coffee. It take Toyota a very long time for them to achieve what they has today. Kia you need to do your time first and than come back and play with big boy.

raikkonen - 1/26/2007 11:21:01 AM

+1 Boost

Your constant anti-Hyundai comments are getting annoying - mostly because they are ignorant.

You don't need a free-trade agreement to "trade" with another country. Maybe you should learn what an FTA really is. It would basically kill the Korean agricultural market. The Hyundai union are basically supporting other workers, even if it means less profit for Hyundai.

What do union strikes have to do with being "Americanized". Such an antiquated term anyway. With the entire world rich in technology, economic, social advancement, you might be searching for the term "globalized" instead.

Your comments are outdated, just like your reasoning.

S4cabriofoxone - 1/26/2007 1:41:17 PM

+1 Boost

What's happening to Hyundai? They seemed to be growing at lightning speed...

S4cabriofoxone - 1/26/2007 11:14:49 PM

+1 Boost

Why are you always so negative?

Live on the bright side, be an optimist!