SEOUL — Hyundai Motor’s operating profit nearly doubled in the first quarter from the same period a year ago, the company said on Thursday, thanks to strong overseas demand.
South Korea’s largest automaker, which ranks No. 5 globally, said operating profit hit 1.7 trillion won ($1.5 billion) in the January-March period, up 91.8% from the previous year.
Sales rose 8.2% to 27.4 trillion won during the period, while net profit soared 175.4% to 1.5 trillion won. Operating profit rose 32.1% and net profit climbed 28.6% from the same quarter a year ago, even as sales sank 6.3%.
The announcement comes as Hyundai struggles to maintain production due to the global semiconductor shortage, which has disrupted a wide range of industries. The components are crucial to everything from smartphones and video games to home appliances, but have become scarce due to exploding demand amid the pandemic.
Hyundai temporarily stopped production of its Sonata and Grandeur sedans at one of its domestic factories on Monday and Tuesday over a lack of chips, which resulted in lost production of 2,050 vehicles. It was the second time in a week and the third time in a month for Hyundai to halt lines at the plant, one of three it operates in South Korea.
Hyundai President Kong Young-woon acknowledged earlier this month that the automaker is having problems sourcing chips for vehicles during a meeting that President Moon Jae-in called with top South Korean business executives. Kong said the company is tapping overseas suppliers to cover the shortage.
