Hyundai Motor’s Q3 profit misses estimates as chip shortage takes a toll
A store signal of Hyundai is seen outdoors a automotive showroom in Bletchley, Milton Keynes, Britain, Might 31, 2020. REUTERS/Andrew Boyers
SEOUL, Oct 26 (Reuters) – South Korea’s Hyundai Motor Co barely missed analysts’ revenue estimates as the worldwide chip disaster drove down automobile shipments and it stated it expects it’ll take a very long time to get again to regular chip provides.
Hyundai, which along with affiliate Kia Corp is among the many world’s prime 10 automakers by gross sales, reported a web revenue of 1.3 trillion received ($1.10 billion) for the July-September quarter.
In the identical interval a 12 months earlier it posted a lack of 336 billion received when it was hit by a one-time expense associated to engine high quality points and recollects.
The revenue was simply shy of a median analyst forecast of 1.4 trillion received compiled by Refinitiv SmartEstimate.
“Hyundai Motor expects that on-year gross sales progress would possibly decelerate for the remainder of 2021 amid adversarial enterprise situations attributable to the unstable provide of semiconductor chips,” Hyundai Motor stated in an announcement.
The automaker stated the worldwide chip scarcity would probably proceed till the tip of this 12 months or subsequent 12 months and it anticipated it could take a very long time to get again to regular.
The , triggered partly by surging demand for laptops and shopper electronics throughout the pandemic, has shuttered auto manufacturing traces globally and compelled automakers to slash cargo forecasts.
Hyundai beforehand stated its on-year gross sales progress would possibly gradual within the second half of 2021 as a consequence of difficult enterprise situations, together with the unstable provide of automotive chips.
Hyundai had turned in its greatest quarterly revenue in about six years within the April-June quarter because of its conservative provide chain administration that helped it to navigate the scarcity higher than different automakers.
However the extended disaster pressured Hyundai to droop manufacturing throughout the third quarter.
This month, Hyundai’s world chief working officer Jose Munoz stated the automaker wished to to scale back reliance on others.
Shares of Hyundai Motor had been buying and selling up 0.7% after the agency printed its earnings outcomes, in contrast with a 0.8% rise within the broader market KOSPI .
($1 = 1,177.2300 received)
Reporting by Heekyong Yang and Joyce Lee; Enhancing by Christopher Cushing, Robert Birsel
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