SEOUL (Reuters) -South Korea’s Hyundai Motor (OTC:) reported on Thursday a 17% fall in fourth-quarter operating profit, declining more than analysts estimated, as it spent more on promotions in a slowing car market.
Hyundai, which together with affiliate Kia is the world’s third-biggest automaker by sales, reported operating profit of 2.8 trillion won ($1.95 billion) for October-December, compared with 3.4 trillion won in the same period a year earlier.
The result was lower than a 3.2 trillion won average of 24 analyst estimates compiled by LSEG SmartEstimate, which is weighted towards estimates from analysts who are more consistently accurate.
Hyundai shares rose 1.4 % after the earnings result.
During the quarter, Hyundai’s global retail sales slipped as solid sales in the United States and India were offset by sluggish demand in South Korea, Europe and China.
A weaker local currency against the U.S. dollar helped raise Hyundai’s repatriated earnings but also increased foreign debt and related financial costs, weighing on profit, analysts said.
($1 = 1,436.4200 won)
