11/08/2003 14:07
Hyundai, South Korea's biggest car company, has almost doubled its profits as its top-end models were snapped up by European and US consumers.
The firm said its profits in the three months to June were up 86% on the same period of 2002, after heavy investment in new models and generous offers on warranties and financing.
The rest of the year is looking good too, the group said.
The news is welcome for a company which has just come out of a seven-week strike at a cost of $1.2bn in lost production, and which recently lost a top executive who committed suicide after being investigated on corruption allegations.
Home and away
The after-tax profit of 571bn won ($484m; £302m) was well ahead of what analysts had expected.
Last year's performance was limited by the need to set aside 200bn won to cover new European environmental regulations, and another 500bn won for warranties in the US.
Hyundai has increasingly found itself able to move towards the big-ticket end of the market.
Luxury saloons and sports utility vehicles have dominated its sales, boosting sales by 6%.
The company normally makes 60% of its money overseas.
In contrast, the domestic market remains mired in recession largely as a result of worries about South Korea's reclusive northern neighbour and its progress towards developing nuclear weapons.
Hyundai sales at home were 11% down on last year's second quarter.
The firm said its profits in the three months to June were up 86% on the same period of 2002, after heavy investment in new models and generous offers on warranties and financing.
The rest of the year is looking good too, the group said.
The news is welcome for a company which has just come out of a seven-week strike at a cost of $1.2bn in lost production, and which recently lost a top executive who committed suicide after being investigated on corruption allegations.
Home and away
The after-tax profit of 571bn won ($484m; £302m) was well ahead of what analysts had expected.
Last year's performance was limited by the need to set aside 200bn won to cover new European environmental regulations, and another 500bn won for warranties in the US.
Hyundai has increasingly found itself able to move towards the big-ticket end of the market.
Luxury saloons and sports utility vehicles have dominated its sales, boosting sales by 6%.
The company normally makes 60% of its money overseas.
In contrast, the domestic market remains mired in recession largely as a result of worries about South Korea's reclusive northern neighbour and its progress towards developing nuclear weapons.
Hyundai sales at home were 11% down on last year's second quarter.
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