SEOUL, Korea, Feb. 5, 2005 – Fueled by a strong growing demand for its products overseas, Hyundai Motor Co. saw its 2004 sales jump by 10 percent to 27.47 trillion won while net profit rose 2 percent year-on-year to 1.78 trillion won (US$1.74 billion). Operating profit fell 11.4 percent to 1.98 trillion won mainly as a result of high material costs and the Korean won’s 15 percent gain against the US dollar this past year.
On a volume basis, worldwide sales rose by 1.9 percent to 1.68 million units. While Korean sales contracted by 13.2 percent to 551,000 units, overseas sales rose 11.4 percent to 1.13 million units. To help raise brand awareness, Hyundai Motor increased worldwide spending in 2004 on advertising and marketing to 5.15 percent of sales compared with 4.95 percent in 2003.
With a new factory scheduled to open in Montgomery, USA soon and gathering sales momentum in the Chinese and Indian markets, Hyundai is targeting a 12.3 percent growth in revenues (domestic and overseas plants combined) this year to a record 36.8 trillion won. Revenues generated by Hyundai’s Korean-based operations alone are projected to grow 3.6 percent this year to 28.5 trillion won while operating profit is seen to rise 8.5 percent to 2.4 trillion won.
This year’s spending on research and development will be raised to 5.9 percent of revenues to 2.78 trillion won, up from 5.4 percent of revenues spent in 2004.
Global retail sales are forecast to reach 2,351,000 units this year, up 15.1 percent from last year.
Established in 1967, Hyundai Motor Co. has grown into the Hyundai Kia Automotive Group which includes over two dozen auto-related subsidiaries and affiliates. Employing over 50,000 people worldwide, Hyundai Motor posted US$20.8 billion in sales in 2003 (on a non-consolidated basis). Hyundai motor vehicles are sold in 193 countries through some 5000 dealerships and showrooms. Further information about Hyundai Motor Co. and its products is available at http://www.hyundai-motor.com/
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