Hyundai Motor Company has reported further growth in vehicle sales and revenue in Q3 2012, accompanied by year-on-year earnings gains at the operating, recurring and net levels. Although the company’s domestic operations were hit by sporadic strikes in Q3 and sales in South Korea fell further, overseas operations continued to strengthen, with sales assisted by growth in China at the expense of the Japanese OEMs.
The company’s global plant sales (wholesales) in Q3 2012 totalled 1,001,000 units, versus 992,000 in Q3 2011, a gain of 0.9%, with sales from domestic plants falling 11.7% to 392,000, reflecting lower output resulting from industrial disputes, but sales from overseas plants rising 11.1% to 609,000 (548,000). Q3 revenue was Won 19,646bn (US$17.78bn), against Won 18,954bn in the third quarter of 2011, a rise of 3.6%.
Wholesales in the first nine months of 2012 (9M 2012) were 3,184,000, compared with 2,950,000 in the same period of the previous year, with domestic wholesales of 1,384,000 (1,351,000) and overseas wholesales of 1,800,000 (1,599,000). Year-to-date revenue was Won 61,751bn, versus Won 57,279bn in the January-September 2011 period, a rise of 7.8%. Automotive Division revenue alone in 9M 2012 totalled Won 52,553bn, versus Won 49,104bn in the previous year, a gain of 7.0%, with Finance Division revenue up 9.1% at Won 6,198bn (9M 2011; Won 5,682bn).
Hyundai reported Q3 2012 gross profit of Won 4,444bn (margin of 22.6%), against Won 4,897bn (25.8%) in Q3 2011, a fall of 9.3%, while 9M 2012 gross profit was Won 14,491bn (23.5% margin), up 3.8% from the Won 13,960bn (24.4%) generated in the same period of the previous year. Cost of goods sold represented 76.5% of revenue in 9M 2012, up from 75.6% in 9M 2011.
Operating profit in Q3 2012 was Won 2,056bn (10.5% margin), versus Won 1,995bn (10.5%) in Q3 2011, a rise of 3.1%, taking the 9M 2012 total to Won 6,841bn (11.1%), compared with Won 5,949bn (10.4%), a gain of 15.0%. The Automotive Division reported 9M 2012 operating income of Won 5,733bn (10.9% margin), against Won 4,911bn (10.0%) in 9M 2011, a rise of 16.7%.
EBITDA in the latest nine-month period was Won 8,708bn, versus Won 7,663bn in 9M 2011.
S,G&A costs as a proportion of revenue decreased between 9M 2011 and 9M 2012 – from 14.0% to 12.8%, with marketing expenses declining to 3.6% of revenue from 4.6%.
The OEM reported recurring profit of Won 9,074bn in 9M 2012, up from Won 7,902bn in 9M 2011, a gain of 14.8%, while net income rose 17.4% to Won 7,164bn from Won 6,102bn. The net margin in 9M 2012 was 11.6%, versus 10.7% in 9M 2011. Recurring and net profit increased 13.4% and 12.9% year-on-year, respectively, in Q3 2012 alone.
