Strong won is damaging Hyundai Motor's profits

[4doorGL]

Hyundai Motor, Korea's largest automobile manufacturer, is seeing growing sales, but is not seeing growing profits - largely as a result of the appreciation of the Korean won against the dollar.

Hyundai expects operating profits in the first quarter to hit a four-year low. It will release its results on April 28.

"Although exports remain favorable, the strengthening won is hurting profits," a Hyundai official said.

Hyundai sold approximately 473,000 units in the first three months - an advance on the 471,000 sold during the same period last year.

However, the car maker's operating profit in the first quarter is estimated at 320 billion won ($313 million), falling far short of the 461.4 billion won made during the same period last year. In the first quarter of 2003, Hyundai Motor's operating profit was 612.9 billion won.

Hyundai said the weak U.S dollar is a serious drain on its profits because exports make up 75 percent of sales. Moreover, 45 percent of those exports go to North America.

Analysts say, however, that the firm has taken appropriate steps to cut dollar exchange-rate risks.

"Hyundai Motor's operating profits will likely exceed 6 percent from the third quarter as the company's Alabama plant is expected to be completed next month," said Ahn Soo-woong, an analyst at Hanhwa Securities.

[TAK82]

so this mean's that either the economy of korea is doing well or The won is like the yen and the euro..making the dollar worth-less??

[i8acobra]

Originally posted by TAK82
[body]
so this mean's that either the economy of korea is doing well or The won is like the yen and the euro..making the dollar worth-less??
[/body]

The dollar is weak because of our debt. The dollar is going down against ALL currencies. You can thank President Dumbass for that.

[Erikgsi]

yes we do have a moron for a president:dead: