Hyundai's 1Q earnings down as vehicle sales drop, local currency strengthens

Markets Associated Press

Hyundai Motor Co. says its first-quarter profit dropped due to lower vehicle sales and the strong local currency.

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The maker of Genesis sedan and Sonata said Tuesday its net profit was down 2 percent over a year earlier to 1.98 trillion won ($1.83 billion) while operating income sank 18 percent to 1.59 trillion won.

The fall in profit was smaller than forecast by analysts but operating income fell short of expectation. Sales dipped 3 percent to 20.9 trillion won.

The Korean automaker, which is part of the world's fifth-largest automotive company, blamed the poor result on lower car sales at home and abroad.

Sales weakened in South Korea, where foreign brands are nibbling away at Hyundai's market share, and also dropped in the United States and China.