Hyundai motor’s fourth-quarter net profit nearly halved, with a target sales volume of 4.32 million in 2022

2022-07-23 0 By

Hyundai Motor released its 2021 performance yesterday, showing that the global wholesale sales volume in 2021 reached 3890,726 units, up 3.9% year on year.Annual revenue of 117.6 trillion won, up 13.1 percent year on year;Operating profit and net profit rose 178.9 percent and 195.8 percent year-on-year to 6.68 trillion won and 5.69 trillion won, respectively.Gross margin rose to 18.6% from 17.8% in 2020.The global sales volume for the fourth quarter was 960,639 units, down 15.7% from the same period last year. The sales volume outside South Korea decreased 17.2%, while the sales volume in South Korea increased 8.9%.Fourth quarter sales decline spread to performance.Hyundai motor posted 31.03 trillion won in revenue in the fourth quarter, up 6.1 percent from a year earlier.However, net profit fell to 701.4 billion won, down 40.73 percent year-on-year and 52.8 percent month-on-month.Hyundai Motor said its net profit fell in the fourth quarter due to one-time expenses related to raw materials and bonuses.Hyundai motor is relatively optimistic about the lack of core, which has been plaguing the auto industry for nearly a year, saying, “The problem has improved since December, but the impact will continue through the first quarter of this year and will gradually stabilize in the second quarter.”Looking ahead to 2022, Hyundai motor aims to sell 4.32 million vehicles annually, with revenue growth of 13-14 percent and annual consolidated operating profit margin of 5.5-6.5 percent.In addition, hyundai motor plans to increase its total investment to 9.2 trillion won, including 5 trillion won in capital expenditure, 3.6 trillion won in r&d and 600 billion won in strategic investment.In the global market, Hyundai motor saw year-on-year declines in both China and South Korea.In China, Hyundai motor sold 385,000 units last year, down 23.3 percent from a year earlier.In the fourth quarter, 87,000 vehicles were sold, down 42.9 percent from a year earlier.In its latest guidance, Hyundai anchored an annual wholesale sales target of 370,000 units in China, up 3.1% from a year earlier.