Hyundai Quadruples Fourth Quarter Profit

Edward Niedermeyer
by Edward Niedermeyer

Hyundai’s fourth quarter profit quadrupled over last year’s fourth quarter results, reports Bloomberg, as net income hit $822m, up from $210m in the same period last year. Operating profit rose 44 percent to $722m. This comes despite an increase in the value of the Won, which has reduced profit on Hyundais exports, which make up half the firm’s revenue. And unlike other automotive firms reaping surprise year-end profits (like Ford), Hyundai’s gains come from increased sales rather than cost-cutting. Hyundai’s overall sales rose 14 percent to 3.2 million units last year, driven by growth in the US and Indian markets. Hyundai finished 2009 with just over five percent of the world market. Hyundai expects sales to rise 11 percent in 2010, and the firm is looking to take advantage of Toyota’s weakness by offering conquest incentives like those now offered by GM, Ford and Chrysler.

Edward Niedermeyer
Edward Niedermeyer

More by Edward Niedermeyer

Comments
Join the conversation
6 of 33 comments
  • Otto Krump Otto Krump on Feb 01, 2010

    Is there any reason to buy a Corolla, Yaris or Camry nowadays over a Hyundai other than brand loyalty based on cars built 10- 20 years ago? Hyundai will take over the appliance car market in the next few years if they keep their prices where they are now

    • Cammy Corrigan Cammy Corrigan on Feb 01, 2010

      Yes, there still is reason to buy a Toyota or Honda. Hyundai, whilst having good quality and reliability, still needs some more long term results before they're with the big boys of reliability. Ford, have made tremendous leaps and bounds in the quality game, but even they need a few years of results before we can fully put them in the class of Toyota and Honda. Also, I can't speak for North America, but in Europe, Hyundais and Kias depreciate quickly, very quickly. a friend of mine had a 2004 Hyundai Coupe which he bought for £16K. After 3 years, he was struggling to sell it for £5K. The problem with value cars is that when it comes to selling them on, they need to have "value pricing" on the used car market in order to be attractive for the next buyer. Why pay the same price for a Hyundai on the used car market, when you can buy a Toyota or Honda, for the same price? Ford suffers from a similar problem, as well. They're bargains on the used car market, but someone has to buy it new in order to take that hit in price.

  • Mr Carpenter Mr Carpenter on Feb 01, 2010

    Cammy, you are right - for the UK. Here in the states, newer Hyundais don't depreciate any faster than Big-3 non-discontinued makes, which still make up a large portion of the market (at least, away from the east and west coasts, anyway). Kias do depreciate faster than Hyundais, but even that is improving, along with their quality (which is lagging behind Hyundai but is catching up somewhat as time goes by). Older Hyundais and Kias to depreciate more than average. This is, as I say, improving - along with the quality of the cars (can't be a coincidence). rockit, I can't "post" the link to the story I read since it was not online, but was a written article in Automotive News, though I do possess a copy of it at home - somewhere. I guess you'll either have to take my word for it, or not. Since I don't work for Hyundai (or any other car company) I'd like to know why the suspicion as to my comment? I suppose you don't know me personally, and that's it. But - there is no reason for me to lie. The story was convincing enough for us to obtain two new Sonatas and we've had virtually zero problems over 3 years with these two four cylinder cars with the engine in question. The 2011 Sonata with this engine even has direct injection and nearly 200hp, with improved MPG's. You don't have to believe me on this point - Hyundai's letting the world know this all by themselves just fine.

    • Don1967 Don1967 on Feb 01, 2010

      Rockit doesn't post links. He just tells others to do it. PS: I read the same story. You're not imagining it.

  • Dave M. Dave M. on Feb 01, 2010
    2011 is nothing more than a Camry with gas pedals that do not get stuck. At a cheaper price, I assume. Hyundai will mostly screw Toyota moreso than Honda, as long as Honda can get back it's styling mojo to match their usual engine prowess. I'm very impressed with the Sonata, Santa Fe, and Genesis....for their price point, you are getting a great value, along with a tremendous drivetrain warranty. The Kia Soul and Sorrento are pretty slick too.
  • John R John R on Feb 02, 2010

    "...take advantage of Toyota’s weakness by offering conquest incentives like those now offered by GM, Ford and Chrysler." Chrysis?? PFFFT! Amusing. I'll still take my chances in a Camry, thanks.

Next