Hyundai Motor and Kia are expected to report lackluster first-quarter earnings compared to last year due to US tariffs and a weaker Korean won. A market analysis of securities firms' forecasts shows Hyundai projecting sales of 45.89 trillion won and operating profit of 2.78 trillion won. Kia anticipates sales of 29.62 trillion won with operating profit down 22.6%.
Hyundai Motor and Kia are poised to report weaker first-quarter operating profits despite sales growth, according to a Yonhap Infomax analysis compiling securities firms' forecasts over the past three months. Hyundai is estimated to announce sales of 45.89 trillion won ($30.4 billion), up 3.3% year-on-year, and operating profit of 2.78 trillion won, down 23.3%, on Thursday. Kia expects sales of 29.62 trillion won, up 5.7%, and operating profit of 2.32 trillion won, down 22.6%, on Friday.
The companies posted relatively solid global sales compared to peers: Hyundai sold 975,123 vehicles, down 2.6% from a year earlier, while Kia sold 779,169 units, up 0.8%, per preliminary data.
US tariffs, effective since April last year, and higher warranty provisions offset these gains. A weaker Korean won raised costs for warranty provisions booked in foreign currency, adding pressure on profits, market watchers said.
