At Hyundai Motor Corporation, there have been smiles lately. But they are frozen smiles. Yes, Hyundai and its subsidiary, Kia, are having a stunning run, with profits being the highest in seven years, as customers trust the two Korean brands for electric and luxury cars like the Ioniq 5 and Genesis. But with the semiconductor shortage "harvesting", concerns about production in the near future cannot be ignored, which is why it warns that third-quarter deliveries may be affected.
As regards the numbers, they are more than flourishing: The operating profit of Hyundai Motor Corporation increased to 1.89 trillion yuan (1,64 billion dollars) in the three months ended June 30, up from 590 billion yuan in the same period last year. This is best Q2 performance since 2014.
The results of the South Korean automotive industry were as follows according to the average estimate of analysts for a profit of 1.9 trillion yuan, according to data compiled by Bloomberg.
Given that the most countries on the planet, in the course de-mining from minerals fuel are turning to the electrification, Hyundai follows their international competitors such as Volkswagen, and is turning to low-end vehicles, or zero emissions. Started sales of the Ioniq 5 all-electric vehicle in Europe and the US this year and plans to launch more than 12 electric models by 2025.
The lack of semiconductors
The Hyundai temporarily suspended production in its factories worldwide, in the midst of the the continuing shortage of semiconductors. To minimize the impact, reduce production less popular models like the Sonata sedans. The higher cost of raw materials, such as rubber and steel, is also expected to affect the automotive industry.
"Production disruptions in May and June are expected to have some impact on sales in the third quarter due to lower inventory." said the Executive Vice President Gang Hyun Seo, on a telephone call with analysts. "Raw material prices are rising and this could affect earnings in the second half".
Η share of the company has recorded anode 19% since the beginning of the year, against gains of 13% of the Kospi index, in Seoul.The vehicle sales in the USA increased by 73% in the quarter compared to a year ago, while European sales more than doubled. In South Korea, sales decreased by 11%.
Record for Kia as well
At the same time, the Kia, an automotive subsidiary of Hyundai Motor, records record operating profit of 1.49 trillion yuan in the second quarter, compared to the 145.2 billion yuan profit a year ago, beating analysts' average estimate of 1.31 trillion yuan in profit, according to data compiled by Bloomberg.
Η share of Kia Records 40% earnings since the beginning of the year.
