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Hyundai Motor's Q3 profit misses estimates as chip shortage takes a toll

Hyundai Motor's Q3 profit misses estimates as chip shortage takes a toll

FILE PHOTO: A shop sign of Hyundai is seen outside a car showroom in Bletchley, Milton Keynes, Britain, May 31, 2020. REUTERS/Andrew Boyers

SEOUL: South Korea's Hyundai Motor Co swung to a profit in the third quarter but slightly missed analysts' estimates as the ongoing global chip shortage drove down shipments of vehicles.

Hyundai, which together with affiliate Kia Corp is among the world's top 10 automakers by sales, reported a net profit of 1.3 trillion won (US$1.10 billion) for the July-September quarter. In the same period a year earlier it posted a loss of 336 billion won when it was hit by a one-time expense related to engine quality issues and recalls.

The profit slightly missed an average analyst forecast of 1.4 trillion won compiled by Refinitiv SmartEstimate.

The global chip crisis, triggered partly by surging demand for laptops and consumer electronics during the pandemic, has shuttered auto production lines globally this year and forced automakers to slash shipment forecasts.

Hyundai previously said its on-year sales growth might slow in the second half of 2021 due to challenging business conditions, including unstable supplies of automotive chips.

Shares of Hyundai Motor were trading flat after the firm published its earnings results, compared with a 0.8 per cent rise in the broader market KOSPI.

Source: Reuters/gs

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