US missile system claims another victim: Hyundai Motor

Company said its Jan-Mar net profit was $1.3 tn won, down 21% from 1.7 tn won a year earlier.

AP | PTI  |  Seoul 

US missile system claims another victim: Hyundai Motor

Motor Co reported on Wednesday more than a 20 per cent drop in its first quarter profit as the anti-Korean sentiment in sparked by the deployment of the missile defence system battered the Korean carmakers' sales in its biggest auto market.

The company said its January-March net profit was 1.3 trillion won ($1.2 billion), down 21 per cent from 1.7 trillion won a year earlier.



Its profit slide was smaller than what analysts expected. FactSet, a financial data provider, said the market consensus was 1.22 trillion won.

Sales rose five per cent to 23.4 trillion won ($20.8 billion). Operating profit fell seven per cent to 1.3 trillion won. The biggest drag in earnings was the missile system that triggered China's anger and hurt Korean businesses in the world's most populous country.

Motor, the maker of Tucson sports utility vehicles and Sonata sedans, said it sold 206,000 cars in during the first three months, down 14 per cent from a year earlier.

In January and February, appeared to have been on track for sales recovery in That changed when South Korea's Defense Ministry signed an agreement with Lotte Group in late February to use its golf course in the southwest to deploy the missile defense system, known as THAAD. In March, saw a sharp fall in its car sales.

"Such sales fall is not due to the internal factor as you know. It is the result of the anti-Korean sentiment that flared up within since late February and some rivals that launched marketing to exploit the anti-Korean sentiment," said Koo Zayong, a vice president at Motor.

South Korea and the say THAAD is a deterrent against North Korean aggression, but opposed it because it worries that its powerful radars could peer through its territory.

has shown its displeasure in other areas too. The once-steady inflows of Chinese tourists to South Korea withered, and Lotte was ordered to stop operations of its big discount chains in China, which cited safety violations.

Instances of anti-Korean sentiments also emerged on Chinese social media and some South Korean schools cancelled their trips to

Hyundai's performance in the US, its second-biggest market, also dropped 3 per cent, outweighing growth in Western Europe and India.

Motor was also hit by massive recalls it estimated to cost around 200 billion won (USD 178 million) during the first quarter. Earlier this month, and Kia recalled 1.4 million cars in US, Canada and South Korea due to possible engine failures.

US missile system claims another victim: Hyundai Motor

Company said its Jan-Mar net profit was $1.3 tn won, down 21% from 1.7 tn won a year earlier.

Company said its Jan-Mar net profit was $1.3 tn won, down 21% from 1.7 tn won a year earlier. Motor Co reported on Wednesday more than a 20 per cent drop in its first quarter profit as the anti-Korean sentiment in sparked by the deployment of the missile defence system battered the Korean carmakers' sales in its biggest auto market.

The company said its January-March net profit was 1.3 trillion won ($1.2 billion), down 21 per cent from 1.7 trillion won a year earlier.

Its profit slide was smaller than what analysts expected. FactSet, a financial data provider, said the market consensus was 1.22 trillion won.

Sales rose five per cent to 23.4 trillion won ($20.8 billion). Operating profit fell seven per cent to 1.3 trillion won. The biggest drag in earnings was the missile system that triggered China's anger and hurt Korean businesses in the world's most populous country.

Motor, the maker of Tucson sports utility vehicles and Sonata sedans, said it sold 206,000 cars in during the first three months, down 14 per cent from a year earlier.

In January and February, appeared to have been on track for sales recovery in That changed when South Korea's Defense Ministry signed an agreement with Lotte Group in late February to use its golf course in the southwest to deploy the missile defense system, known as THAAD. In March, saw a sharp fall in its car sales.

"Such sales fall is not due to the internal factor as you know. It is the result of the anti-Korean sentiment that flared up within since late February and some rivals that launched marketing to exploit the anti-Korean sentiment," said Koo Zayong, a vice president at Motor.

South Korea and the say THAAD is a deterrent against North Korean aggression, but opposed it because it worries that its powerful radars could peer through its territory.

has shown its displeasure in other areas too. The once-steady inflows of Chinese tourists to South Korea withered, and Lotte was ordered to stop operations of its big discount chains in China, which cited safety violations.

Instances of anti-Korean sentiments also emerged on Chinese social media and some South Korean schools cancelled their trips to

Hyundai's performance in the US, its second-biggest market, also dropped 3 per cent, outweighing growth in Western Europe and India.

Motor was also hit by massive recalls it estimated to cost around 200 billion won (USD 178 million) during the first quarter. Earlier this month, and Kia recalled 1.4 million cars in US, Canada and South Korea due to possible engine failures.
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