Huge profit fall for Hyundai pushes shares down 6%
The South Korean car maker has had to grapple with costs stemming from US airbag and engine-related recalls
Seoul — Hyundai said third-quarter profit plunged by a shocking two-thirds on Thursday, hit by a $440m one-off charge related to US recalls, sending its shares tumbling. The South Korean car maker has had to grapple with costs stemming from US airbag and engine-related recalls. Earlier in October, a US safety group called for an expansion of the engine recall, citing a surge in fire complaints. The recall headache adds to a plethora of issues at Hyundai, which has posted five straight years of annual profit declines due to weak sales in the US and China, the world's two biggest vehicle markets. Quarterly net profit slid to 269-billion won ($236m), the lowest amount in more than seven years and well below a SmartEstimate of 831-billion won, according to Refinitiv data. Operating profit slumped 76%t while sales rose 1% to 24.4-trillion won. Shares in Hyundai finished down 6%, their lowest level since March 2010. At one point they fell as much as 12%. "The one-off costs were too big, a...
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