SEOUL: Hyundai Mobis Co., South Korea’s largest auto parts maker, announced on Friday a 7.7 percent decline in its third-quarter net profit compared to the previous year, attributing the decrease to equity losses from its affiliates.
According to Yonhap News Agency, the company’s net profit for the three months ending in September fell to 921.23 billion won (approximately US$668 million), down from 998.11 billion won during the same period last year. The decline was primarily influenced by shareholding losses from Hyundai Motor Co. and other affiliates, a Hyundai Mobis spokesperson confirmed.
Hyundai Motor, a key affiliate, reported a 3 percent year-on-year decrease in its third-quarter net profit, amounting to 3.2 trillion won. The decline was attributed to increased incentives and higher warranty costs in advanced markets. Despite the net profit drop, Hyundai Mobis saw its operating profit soar by 32 percent to 908.56 billion won, up from 690.21 billion won a year ago. This increase was supported by compa
nywide cost reduction strategies, improved productivity, and higher product prices, the company stated.
Sales, however, experienced a slight downturn, falling 1.6 percent to 14 trillion won from 14.23 trillion won in the same period last year. Over the first nine months of the year, Hyundai Mobis’s net income saw a modest rise of 0.3 percent, reaching 2.78 trillion won from 2.77 trillion won during the corresponding period last year.
Furthermore, Hyundai Mobis secured $2.4 billion worth of orders in the first nine months of 2023, achieving only 26 percent of its annual target of $9.34 billion. The company attributed this shortfall to sluggish sales in the electric vehicle sector, which has been a growing focus in the automotive industry.