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Hyundai Motor Q2 net profit down 1.0%

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(GlobalPost/GlobalPost)

South Korea's top automaker Hyundai Motor said Thursday second-quarter net profit fell 1.0 percent from a year earlier, as work stoppages outstripped strong overseas sales.

The company posted a consolidated net profit of 2.52 trillion won ($2.26 billion) in the April-June period, compared with a profit of 2.55 trillion won a year earlier.

Operating profit was down 5.2 percent year-on-year at 2.4 trillion won while sales rose 5.7 percent to 23.1 trillion won.

The firm said it sold 1.22 million cars in the second quarter, compared with 1.17 million in the previous quarter and 1.1 million a year ago.

Hyundai said it lost about 1.7 trillion won between March 9 and June 1 as the firm's 45,000-member union refused to work weekends over pay and conditions.

However, the firm did say that it saw improved efficiency at overseas plants with a better brand value leading to brisk sales, which rose by more than a fifth to 744,225 units in the second quarter.

However, it warned that the potential wind-down of the US Federal Reserve's stimulus programme as well as slow growth in key market China could pose risks in the next six months.

-- Dow Jones Newswires contributed to this report --

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http://www.globalpost.com/dispatch/news/afp/130725/hyundai-motor-q2-net-profit-down-10