SEOUL (Reuters) -Hyundai Motor posted a decline in second-quarter operating profit on Thursday, down 16% from a year earlier, as U.S. tariffs on vehicles and parts started to weigh on its bottom line.
Hyundai, which together with affiliate Kia is the world’s third-biggest automaking group by sales, booked operating profit of 3.6 trillion won ($2.64 billion) for April-to-June, compared with 4.28 trillion won in the same period a year earlier.
The result compared with a 3.5 trillion won LSEG SmartEstimate drawn from 22 analysts. The consensus estimate gives more weight to analysts who are more consistently accurate.
The South Korean automaker said it was sticking to its annual profit target for now even after U.S. tariffs cost the company 828 billion won in the second quarter.
While U.S. tariffs pose risks to its operations, the weaker South Korean currency helped cushion some of the blow from tariffs, it added.
“Hyundai Motor will continue to monitor its annual profitability guidance and flexibly adjust its targets in line with global market conditions,” the company said in a statement.
South Korean companies have been on tenterhooks after Washington reached a deal with Japan this week that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods.
South Korea’s finance ministry said on Thursday that talks due to be held on Friday between top Seoul and Washington officials over tariffs have been rescheduled because of a scheduling conflict for U.S. Treasury Secretary Scott Bessent.
Hyundai Motor said its revenue rose 7% from a year earlier to 48.3 trillion won, versus an analysts’ consensus of 47 trillion won.
The automaker’s shares fell 3.2% after the earnings announcement.
($1 = 1,366.2000 won)
(Reporting by Hyunjoo Jin; Editing by Christian Schmollinger)
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