Hyundai Motor Reports Large Increase in First-quarter Earnings

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SEOUL, South Korea April 29, 2004; The AP reported that Hyundai Motor Co., South Korea's largest automaker, said Thursday that first-quarter net earnings rose 11 percent on strong sales in Europe, China and India.

Net profit rose to 463 billion won (US$395.7 million) for the January-March period, up from 418 billion won a year earlier, the company said in a statement. But the results were slightly below earnings of 470.2 billion won (US$401.9 million) forecast by analysts surveyed by Dow Jones Newswires.

Revenue rose 2 percent to 6.21 trillion won (US$5.3 billion), from 6.09 trillion won. Sales were dampened by a sluggish domestic market, but got a boost in Europe, China and India.

Hyundai's domestic sales plunged 30 percent to 129,000 vehicles in the quarter; exports rose 5.2 percent to 235,000. For 2004, Hyundai is targeting total sales of 1.76 million units -- 710,000 locally and 1.05 million overseas.

Company president Park Hwang-Ho reiterated Thursday that nothing has been decided regarding Hyundai's partnership with German automaker DaimlerChrysler AG.

Hyundai announced on Monday it was in talks with DaimlerChrysler to pare down its relationship with the German auto maker from a comprehensive strategic alliance to a more limited partnership.

DaimlerChrysler currently owns a 10 percent stake in the South Korean auto company.

On Wednesday, Hyundai became the first South Korean automaker to top U.S. and European automakers in initial quality, according to the annual quality report from J.D. Power and Associates.

Among manufacturers, No. 1 Toyota was followed by American Honda Motor Co., then Hyundai.