Hyundai Q1 profit tumbles 44pc, far short of estimates

South Korea’s Hyundai Motor said on Thursday first-quarter (Q1) net profit slumped 44 per cent to its lowest level for the quarter in a decade as the spreading coronavirus outbreak hit demand for cars worldwide.

Net profit for January-March was 463 billion won ($376 million), far below an average Refinitiv estimate of 607 billion won drawn from 15 analysts, reports Reuters.

At the pandemic prompted governments to order lockdowns and other social distancing measures, consumer demand began tumbling in January - first in China, then in South Korea and from March in Europe and the United States.

Operating profit dropped 5 per cent to 864 billion won from the same period a year earlier on an 6 per cent slide in revenue.

Hyundai said in a statement it expects to face weakening profitability in the second quarter due to the pandemic.

With the outlook for many countries’ recoveries from the pandemic unclear, Hyundai has suspended production at three of its eight plants globally.

Hyundai shares rose 0.4 per cent after the results, underperforming an 1.1 per cent climb for the wider market.