(ATTN: ADDS reason for the quarterly net gain in 2nd para from bottom)
SEOUL, Jan. 25 (Yonhap) -- Hyundai Motor Co., South Korea's leading carmaker, said Thursday its net profit plunged 21 percent last year from a year earlier due mainly to a strong won and slowing demand in major markets.
For all of 2017, net profit fell to 4.546 trillion won (US$4.28 billion) from 5.719 trillion won a year earlier, the company said in a statement.
"A combination of the won's strength against the dollar, tougher competition with rivals in major markets, such as China, and increased marketing costs had an impact on the annual bottom line," the statement said.
In China, Hyundai Motor saw its sales fall 31 percent on-year to 785,006 vehicles last year, while its affiliate Kia Motors Corp.'s sales also declined 44.61 percent to 360,006 units.
Korean companies suffered sales declines in China due to political tensions between Seoul and Beijing over the installation of an advanced U.S. missile defense system, called THAAD, in South Korea last year. Beijing opposed the system, arguing it could be used against the country, though Seoul said it is purely aimed at deterring missile threats from North Korea.
Looking ahead, Hyundai Motor expects global vehicle demand will "stay at the lowest levels since the 2008 financial crisis" due to a prolonged low growth trend and rising protectionism in major economies, the statement said.
Reflecting this gloomy outlook, the maker of the Sonata sedan and the Santa Fe SUV set a sales goal of 4.68 million autos for this year. The 2018 target is slightly higher than the 4.51 million units sold last year.
Full-year operating profit declined 12 percent on-year to 4.575 trillion won last year from the previous year's 5.194 trillion won. Sales rose 2.9 percent to 96.376 trillion won from 93.649 trillion won, it said.
In the fourth quarter, which ended Dec. 31, however, net profit rose 21 percent to 1.288 trillion won from 1.069 trillion won a year ago.
"Reduced corporate taxes in the United States were reflected in the quarterly bottom line as one-off gains," a company spokesman said.
Operating profit declined 24 percent on-year to 775.2 billion won from 1.021 trillion won, and sales fell 0.2 percent to 24.501 trillion won from 24.538 trillion, the company said.
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