Saturday, February 5, 2005

Hyundai reports 2 percent increase in profit in 2004

Associated Press

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SEOUL, South Korea -- Hyundai Motor Co., South Korea's largest automaker, said Friday its fourth-quarter profit tumbled 21 percent but that its earnings for the year edged up 2 percent.

The maker of the Sonata sedan and Santa Fe sport utility vehicles said its profit was squeezed by higher costs of materials and the stronger local currency, which makes South Korean exports more expensive overseas.

It earned 361.4 billion won ($351.6 million) in the last three months of 2004 versus 459.3 billion won a year earlier. Sales rose nearly 4 percent to 7.54 trillion won ($7.3 billion) from 7.25 trillion won a year earlier.

For the year, Hyundai earned 1.78 trillion won ($1.74 billion), up from 1.74 trillion won in 2003. Sales rose to 27.47 trillion won ($26.75 billion) from 24.97 trillion won in 2003.

The company said it sold 1.678 million vehicles last year, up 1.9 percent from 2003. Nearly 70 percent, or 1.127 million, were sold abroad.

Global prices of steel plates surged more than 50 percent in 2004, pushed higher by strong demand in China.

The South Korean won gained more than 15 percent against the U.S. dollar in the last three months of 2004 compared with the same period a year earlier.

Hyundai aims to sell 2.994 million vehicles this year. It plans to begin operations of its first U.S. plant in Montgomery, Ala., in March.

On the Net:

Hyundai Motor Co.: http://www.hyundai-motor.com/