Hyundai reports estimate-beating profit powered by luxury car and EV growth

Hyundai Motor Co. reported third-quarter earnings that beat analyst forecasts thanks to strong sales of luxury models and electric vehicles, as well as the Korean won’s continued weakness.

Consolidated operating profit for the three months through September rose 146% from a year earlier - when the company booked one-off warranty provisions — to 3.8 trillion won ($2.8 billion), beating the 3.6 trillion won mean estimate from 24 analysts. Sales rose 8.7% to 41 trillion won.

The company said it sold nearly 169,000 electrified models in the period, an increase of more than 33% from a year earlier. Total global vehicle sales topped 1.04 million, rising about 2% outside Korea, helped by strength in North America, Europe and India, it said. But they fell 33% in China.

Sales momentum should be “enhanced thanks to improved production status, stronger demand for Hyundai, Genesis-branded models and lower inventory levels," despite global uncertainties such as geopolitical tensions, interest rate fluctuations and rising inflation, Hyundai said in a statement Thursday.

Sales of luxury models, including Genesis and sport-utility vehicles accounted for almost 60% of the quarterly total, while battery-powered vehicles accounted for 6.3%. Hyundai also announced 1,500 won per share cash payout to shareholders. The won weakened about 2.4% against the dollar in the quarter.

Hyundai said it plans to introduce more EV models globally, including the Kona EV, Genesis GV60, Electrified G80 and GV70, as well as its Ioniq 6. The fifth-generation Santa Fe SUV should help sales momentum this year, it said.