Hyundai Mobis Co., car parts making unit under Hyundai Motor Group, reported over 20 percent fall in operating profit for the first quarter on shipping and raw material disruptions.
Hyundai Mobis disclosed Friday its operating profit at 386.9 billion won ($311.4 million) for the quarter ended March 31, 2021, down 26.8 percent from the previous quarter and 21.1 percent from a year earlier. The result is 22.5 percent below market consensus of 499.1 billion won, compiled by Yonhap Infomax.
Its sales were estimated at 11.3 trillion won, down 2.6 percent on quarter but up 15.2 percent on year.
Net profit came to 521.0 billion won, down 6.0 percent on quarter and 13.7 percent on year.
The Kospi-listed shares lost 0.47 percent to 211,000 won on Friday morning.
The poor results are largely owed to the surging raw materials prices and logistics cost on top of sluggish auto sales from chip shortage and geopolitical risks, the company explained.
The company bumped up its R&D spending on future technology, which resulted in selling, general & administrative expenses of 856.8 billion won, up 20.8 percent from a year ago.
The company projected an improvement from the second quarter on increased demand for premium and green vehicles.
Its first-quarter sales from electric car parts business jumped 64 percent from a year earlier.
Also, spare parts orders for after-sales service in major overseas markets, including North American and Europe, rose more than 40 percent.
Order from global automakers beyond flagships Hyundai Motor and Kia has been on the rise.
It secured $1.66 billion worth of core auto parts orders, which is tantamount to 44 percent of this year’s target, in the first quarter alone.
By Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
