Hyundai, Kia Slide on Profit Outlook as Sales Drop: Seoul Mover

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Hyundai Motor Co. (005380) and Kia (000270) Motors
Corp., South Korea’s biggest automakers, tumbled in Seoul
trading as falling car sales dampened the outlook for fourth-quarter earnings.

Hyundai’s shares headed for their steepest loss since July
12, sliding 4 percent to 239,500 won at 11:19 a.m. on the Korea
Exchange. Kia slid 4.7 percent to 56,800 won, poised for the
lowest close since June 24.

Seoul-based Hyundai’s car sales dropped 2.8 percent last
month from a year earlier to 408,533 units in a regulatory
filing yesterday. Kia also said its sales for last month slipped
0.3 percent to 257,473 units.

“Shares are falling today on concerns that fourth-quarter
earnings may be impacted by faltering sales of the country’s two
largest carmakers,” Im Jeong Jae, a Seoul-based fund manager at
Shinhan BNP Asset Management Co., which oversees $32 billion,
said by phone.

Hyundai and Kia struggled to sell more cars in their home
turf as domestic sales slid 12 percent last month, according to
the filings. Hyundai’s overseas sales dropped 1.3 percent, while
Kia’s increased 2.2 percent.

To contact the reporter on this story:
Sharon Cho in Seoul at
ccho28@bloomberg.net

To contact the editor responsible for this story:
Michael Patterson at
mpatterson10@bloomberg.net

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