(Bloomberg) — Hyundai Motor Co.’s quarterly earnings missed analysts’ estimates, hurt by a global semiconductor shortage and rising commodity prices.
The South Korean automaker’s operating profit fell 6.8% from a year earlier to 1.53 trillion won ($1.28 billion) in the three months through December, lower than the 1.79 trillion won average estimate of analysts tracked by Bloomberg.
Sales totaled 31 trillion won, up 6.1% and marginally higher than estimates, according to a statement Tuesday. Consolidated net income slid 57% to 546 billion won, far below the 1.47 trillion won estimate.
Hyundai shares fell as much as 3.6%, the most since Oct. 1.
The company’s global retail sales declined 15% in the quarter, with a slump of 43% in China. South Korea and North America sales fell 8.9% and 7.9%, respectively. Europe was an outlier with a 7% increase.
Hyundai aims to sell 4.32 million vehicles this year, representing 11% growth.
Pyoung-Mo Kim, an analyst at Seoul-based DB Financial Investment, said normalization of production for Hyundai could delayed to late this year as chipmakers such as Taiwan Semiconductor Manufacturing Co. may raise prices with supply chains under pressure.
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In addition to supply-chain snags, higher commodity prices have been a burden. Hyundai said in November that cost of iron ore in the third quarter jumped 63% from a year earlier to $165 a ton, while aluminum rose 40% to $2,384 a ton, and copper climbed 48% to $9,188.
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Hyundai’s share of the global EV market is estimated to be 5.7% based on sales from January to November in 2021, according to data from Seoul-based Hana Financial Investment.
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