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Hyundai Motor Share Price Rises as Revenue Increased

Nigel Frith Nigel Frith
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Hyundai car Tucson model

Shares of Hyundai Motor (KRX: 005380) closed the day 2.69% higher after the car producer saw its revenue rise by 2.3% on year to 27.6 trillion won in the third quarter. The company said it witnessed a great demand for its vehicles in the United States and India.

However, Hyundai reported a net loss of 336 billion won ($297.72 million), significantly lower than 1.2 trillion profit expected by the market’s analysts. 

A huge loss is a direct result of higher costs as the South Korea-based car producer had to set aside 2.1. trillion won to cover charges related to engine defects.

“Third-quarter results reflect engine-related provision expenses as the company took preemptive measures to ensure customer safety and cover any possible future increase in quality-related expenses,” Hyundai said in a statement.

“We sincerely apologise to our shareholders and investors for having repeated quality cost issues over three quarters since 2018.”

Hyundai Motor stock price gained on higher 3Q revenue October 2020

Hyundai share price closed at 171500 won or 2.69% higher on the day to nearly erasing all of last week’s losses. 

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Nigel Frith
Nigel Frith
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Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.

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