The fourth-quarter net profit of Hyundai Motor Co. dropped 22%, hurt by the weakened ruble and higher costs related to product warranties, as The Wall Street Journal reports.
On Thursday the world’s fifth-biggest auto maker, when combined with affiliate Kia Motors Corp., reported net profit was 1.66 trillion won ($1.53 billion) in the October-December period, down from 2.13 trillion won a year earlier.
Fourth-quarter operating profit was down to 1.88 trillion won from 2.03 trillion won. Revenue rose 7.5% to 23.57 trillion won from 21.94 trillion won thanks to solid sales of its latest models at home and abroad, and helped by a weakening won versus the dollar.
Overall results were worse than market expectations. The average assessment of six analysts questioned by The Wall Street Journal was for the auto maker to post a net profit of 2.03 trillion won.
Hyundai said sales from its Russian operations were hurt by the weak ruble, as the country suffers from falling oil prices and Western sanctions over the crisis in Ukraine.
