SEOUL (Business) – Hyundai Motor announced that its first-quarter net profit slumped 44% to the quarter’s lowest level yet in a decade. This can be attributed to the coronavirus outbreak which has hit demand for cars worldwide.
The january-March net profit was 463 billion won, far below the average 607 billion won estimate drawn from 15 analysts.
With coronavirus prompting governments to order strict lockdowns and other social distancing measures, auto consumer demand began tumbling in January. This effect became apparent first in China, then South Korea and from March in Europe and the U.S.
A 5% drop in operating profit is spotted to 864 billion won from the same period a year earlier on an 6% slide in revenue.
Hyundai expects to face weakening profitability in the second quarter too owing to the pandemic.
Hyundai has suspended production at three of its eight global plants.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.