Hyundai Motor's profit drops 28 percent as appreciation of local currency weighs

MarketsAssociated Press

Hyundai Motor Co. says profit sank nearly 30 percent for the July-September quarter, hurt by a stronger South Korean currency.

South Korea's largest carmaker said Thursday third quarter net income of 1.6 trillion won ($1.5 billion) was down 28 percent from 2.3 trillion won a year earlier.

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Sales rose 2 percent to 21.3 trillion won. Hyundai said it sold 3.62 million vehicles during the first nine months of the year, 4 percent higher from a year earlier.

Profit fell because the stronger won against the U.S. dollar and the Japanese yen increased expenses.

Hyundai's share price has slumped since a Hyundai-led consortium decided to spend $10.1 billion for land in Seoul for new headquarters, sparking criticism that Chung Mong-koo, chairman of Hyundai Motor, was wielding outsized influence over the company.