Hyundai WIA third-quarter operating profit rises 5.5 percent as sales grow

Hyundai WIA said Friday its third-quarter operating profit rose 5.5 percent from a year earlier to 54.7 billion won ($41 million), with sales up 14.3 percent to 2.46 trillion won ($1.84 billion) as module and thermal-management volumes grew.

Pre-tax income swung to a loss of 61.4 billion won from a 50.3 billion won profit a year earlier, and net income shifted to a 10.3 billion won loss ($7.71 million). Hyundai WIA attributed the swing to a 46.2 billion won ($34.6 million) deterioration in foreign-exchange gains and losses, driven by movements in the won-dollar and ruble-euro rates.

The operating result was supported by higher mobility volumes — engines and modules — and by an 11 percent increase in special-purpose vehicle sales. Those gains were offset by a weaker product mix from lower engine, drivetrain and axle volumes in Russia, along with higher raw material, exchange-rate settlement and logistics costs, the company said.

By segment, mobility revenue rose 15.1 percent on-year to 2.29 trillion won ($1.71 billion), though operating profit there fell 4.4 percent to 41.2 billion won for a margin of 1.8 percent. The special-purpose vehicle and robotics business lifted sales 4.2 percent to 171 billion won ($128 million) and operating profit 55.2 percent to 13.5 billion won, a margin of 7.9 percent.

Module sales climbed 18 percent on the year, while thermal-management sales jumped 160 percent. The company also credited the sales increase to engine demand in Mexico for hybrid vehicles and higher domestic volumes, partly offset by lower Russian demand and a 7 percent decline in drivetrain, axle and robotics revenue.

At the end of the third quarter, Hyundai WIA reported a debt-to-equity ratio of 73 percent and net cash of 423 billion won ($317 million). Cash and cash equivalents fell by 110 billion won as it repaid maturing corporate bonds.