Hyundai Motor Says 1Q Net Profit Slid

SEOUL, South Korea May 13, 2003; Dow Jones reported that Hyundai Motor Co., South Korea's largest car maker, Tuesday posted a 29% fall in first-quarter net profit to 417.6 billion won ($ 350.5 million), largely because of weak domestic sales.

The earnings exceeded analysts' expectations. A recent Dow Jones Newswires poll of analysts had projected average net profit of 357.9 billion won.

The company reported net profit of 586.6 billion won in the year-earlier period.

Revenue rose to 6.09 trillion won in the three months to March, from 5.69 trillion won in the first quarter of 2002, while operating profit climbed to 612.9 billion won from 577.6 billion won.

Although the company's exports to North America and Europe rose 7.8% on year to 125,000 units and 19% on year to 63,000 units, respectively, domestic sales fell 6.2% on year to 184,000 units, Hyundai Motor said.

Domestic sales were hurt by weaker consumer confidence amid an economic slowdown and a surge in oil prices in the first quarter amid jitters over U.S- led military action in Iraq.

Hyundai Motor also said its research expenses rose, due in part to a change in accounting methods, while personnel costs increased as a result of a special incentive program.