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Hyundai and Kia Lag behind in Profitability

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Monday, September 23rd, 2013
SEOUL, KOREA- In terms of operating profit-to-sales ratio, Hyundai Motor and Kia Motors slipped to No. 3 spot worldwide in the first half of this year due to labor strikes and the hike in the won's value. In contrast, that of Toyota Motors rose to No. 2 thanks to the depreciation of the yen. 

In the first half of this year, BMW came on top in terms of the operating profit-to-sales ratio among the world's major automakers. BMW's operating profit-to-sales ratio stood at 11.1 percent, followed by Toyota with 9.6 percent, and Hyundai Motor and Kia Motors with 8.9 percent.

Hyundai Motor and Kia Motors saw their operating profit-to-sales ratio fell by 1.6 percentage points from 10.5 percent a year ago, the largest drop among the world's top-ten automakers. They posted sales of $60.3 billion in the first half of this year, up 4 percent year on year, but their operating profit fell by 11.6 percent to $5.35 billion.

In contrast, Toyota marked a sharp increase in sales volume on the back of the decline in the yen's value, plus its aggressive price cutting strategy. Toyota recorded sales of $121.9 billion in the first half of this year, dwarfing GM ($75.9 billion), thereby solidifying its No. 1 position in the global marketplace.


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