Hyundai Motor Announces 2012 Business Results
- Revenue rises 8.6%, net profit up 11.7% on increased sales, new models
- Hyundai aims to sell 4.66 million units globally in 2013
(Seoul, Korea) Hyundai Motor Company, the fastest-growing automaker by brand, today announced its 2012 full-year earnings results. In spite of the challenging business environment with fluctuating exchange rates, Hyundai managed to sustain its upward momentum.
For the year 2012, sales revenue rose 8.6 percent to 84.47 trillion won (automotive: 71.31 trillion / finance and other: 13.16 trillion) from a year earlier, helped by increased sales volume and improved product-mix. Operating profit rose 5.1 percent to 8.44 trillion won, while net profit increased 11.7 percent to 9.06 trillion won (including non-controlling interest), fueled by robust performance at the company’s overseas plants and subsidiaries.
Hyundai sold 4,410,357 units globally (Korea: 667,496 / overseas: 3,742,861) in 2012, an 8.6 percent increase from a year earlier. While its sales in Korea fell 2.2 percent to 667,496 units from the previous year, its overseas sales rose 10.8 percent to 3,742,861 units (exports: 1,243,763 / overseas plants: 2,499,098). In particular, sales jumped more than 10 percent in Europe to 444,000 units, bucking the market’s trend of shrinking demand.
In the fourth quarter alone, sales revenue increased 10.7 percent to 22.72 trillion won (automotive: 18.75 trillion / finance and other: 3.97 trillion) with global sales of 1,226,847 units. However, operating profit decreased 11.7 percent to 1.83 trillion won from a year earlier, mainly due to currency fluctuations unfavorable to Hyundai.
To overcome sluggish demand in the Korean domestic market, Hyundai aggressively expanded exports from Korea, while boosting sales in its overseas markets through its local production and sales network. Hyundai also enhanced its profitability through improved product-mix and efficient marketing based on qualitative growth.
Hyundai forecasts that the global auto market, including some emerging markets, will face slowing demand amid fiercer competition and tougher government policies. Nevertheless, Hyundai aims to sell 4.66 million vehicles globally in 2013 (Korea: 668,000 / overseas: 3,992,000), a 5.7 percent increase from last year. Hyundai plans to achieve this by strengthening its fundamentals by promoting qualitative growth and securing future competitiveness, rather than quantitative growth.