SEOUL (AP) _ South Korea's biggest automaker Hyundai Motor Co.
said Thursday its second quarter net profit rose 52 per cent from a
year earlier on robust domestic demand and cost-cutting efforts.
Hyundai Motor, the world's sixth-largest carmaker by sales, said
net profit for the three months through June grew to 611.5 billion
won (US$666 million) from 403.1 billion won a year earlier.
Sales rose 15 per cent during the quarter to 8.03 trillion won
The net profit was higher than expected. The average forecast of
10 analysts in a survey had predicted a net profit of 520.3 billion
``From April to June, strong sales of the new Grandeur premium
sedans, the mid-sized Sonata sedans and the new Avante compact cars
gave a boost to the bottom line,'' said Jake Jang, a company
To cushion the impact from the strong won, which erodes export
income, Hyundai began speeding up its cost-cutting efforts this year
and it is paying off, Hyundai Motor's Executive Vice President Chung
Tae-Hwan said in an investor relations session held after the
Hyundai Motor is targeting to cut costs by one trillion won
($1.09 billion) for this year, he said. The U.S. currency weakened
to 918.20 won as of Thursday from 929.80 won as of the end of 2006.
In the first half, the automaker posted net profit of 918.9
billion won, up 23 per cent from 745.5 billion won a year ago. Sales
rose 4.9 per cent to 2.775 trillion won.
In terms of vehicles sold, Hyundai said it sold 840,722 units in
the first six months, up 1.2 per cent from 831,067 a year earlier.
In the second quarter, it sold a total of 453,259 units, up 10 per
cent from 412,630 units a year ago.