Hyundai profit tops estimates on robust hybrid vehicle sales

Hyundai profit tops estimates on robust hybrid vehicle sales

Hyundai Motor Co. reported record quarterly profit that topped analysts’ projections as strong sales of hybrids offset losses from electric vehicles.

Operating profit for the three months ended June was 4.3 trillion won ($3 billion), compared with the 4.2 trillion won median estimate compiled by Bloomberg. The profit was a record, at least since 2015, according to data compiled by Bloomberg. Revenue rose 11% from a year ago to 45 trillion won, the Seoul-based company said.

Shares fell as much as 4.3% in Seoul amid a broad market slump.

The world’s third-largest carmaker is focusing on hybrids as demand for battery-powered cars wanes. Tesla Inc.’s second-quarter deliveries fell for second straight quarter, while General Motors Co. walked back expectations for its goal of building 1 million EVs by the end of next year. In Europe, Porsche AG abandoned its electrification targets due to lower-than-anticipated sales in Europe and China.

Hyundai sold about 122,000 hybrid vehicles in the second quarter, accounting for 11.6% of total deliveries. Battery-powered vehicles accounted for 5.6% of total shipments, compared with 7.4% a year earlier.

Total retail sales in the second quarter were 1.03 million, dropping 3% from a year earlier, according to its earnings presentation. Value-added products, such as sports-utility vehicles and luxury brand Genesis, accounted 61% of the total. Retail sales in North America climbed 5.2%, while those in Europe fell 1%. China saw a steep decline of 32%, while India posted a 1% gain.