Hyundai profit surges, favourable currency rates offset sales decline

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WATCH: Hyundai posted a better-than-expected rise in quarterly profit as favorable exchange rates more than made up for a jump in raw material costs and a drop in sales caused by the global chip shortage

posted a better-than-expected 19% rise in quarterly profit as favourable exchange rates more than made up for a jump in raw material costs and a drop in sales caused by the prolonged global chip shortage.

Like other automakers, Hyundai has raised prices to cope with soaring raw material expenses and logistics costs such as sourcing chips, and analysts expect further vehicle price hikes.Net profit climbed to 1.6 trillion won in January-March. Analysts expected a 1.4 trillion won profit, according to a Refinitiv SmartEstimate."Robust sales of SUV and Genesis luxury models, declining incentives, and a favorable foreign exchange environment helped lift revenue ...

The South Korean won was nearly 7% weaker against the U.S. dollar in the period, boosting the value of earnings garnered abroad.

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