SEOUL, Korea, July 29, 2004 - Hyundai Motor Co. today announced that its first half net income fell by 1.6 percent y-o-y to 973 billion won ($832 million) on revenues 13.3906 trillion won ($11.45 billion) as sluggish domestic demand, heavier marketing expenses in the home market and escalating commodity prices squeezed profitability.
Unit sales for the period touched 794,039 down 5.8 percent y-o-y. While exports rose 5.4 percent to 520,864 units buoyed by brisk demand in the United States, Europe and China where sales were up 2.8 percent, 20.4 percent and 172.3 percent respectively. Domestic sales however fell by 21.6 percent to 273,175 units. Operating profit, which equals sales minus the cost of goods sold and administrative expenses, slipped by 6.7 percent to 1.1738 trillion won.
In the second half, overseas marketing efforts will be ramped up with special emphasis on boosting sales of higher margin vehicles such as the Santa Fe, Sonata, XG and all-new Tucson.
Established in 1967, Hyundai Motor Co. has grown into the Hyundai Automotive Group which includes Kia Motors Corp. and over two dozen auto-related subsidiaries and affiliates. Employing nearly 50,000 people worldwide, Hyundai Motor posted US$21.94 billion in sales in 2002. Hyundai motor vehicles are sold in 166 countries through 4,504 dealerships and showrooms. Further information about Hyundai Motor Co. and its products is available on the Internet at http://www.hyundai-motor.com