Sunday 12 April 2020
South Korean Hyundai Motor and Kia Motors are expected to suffer a significant drop in their revenue during the first quarter due to the effects of the Corona virus on production and sales.
The Yonhap Informax service, the financial service of the South Korean Yonhap News Agency, expected that Hyundai would post an operating profit of 700 billion won ($ 577 million) between January and March, a decrease of 15% compared to 824.9 billion won during the same period. From last year.
Before the outbreak, Hyundai was expecting 1.2 trillion won operating profit in the first quarter, on the back of new models.
The profits of Kia Corporation are expected to decrease 44% to 333.5 billion won during the first quarter, compared to 594.1 billion won during the same period last year. Before the outbreak, Kia had expected to post operating profits of 500 billion won in the first quarter.
In light of the outbreak of the Corona virus, the two companies suspended most of their factories’ work abroad. Work continues in factories in South Korea and China, as well as a Kia plant in Slovakia.
Analysts said the two companies will focus on domestic sales until the slow pace of the outbreak of the Corona virus and the recovery of sales in foreign markets.
Analysts expect Hyundai and Kia to record operating profits of 735.5 billion won and 300 billion won, respectively, during the quarter from April to June, compared to the profits recorded by the two companies during the same period last year and amounted to 1.238 trillion and 533.5 billion won, respectively.