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Hyundai Motor’s Q3 profit misses estimates as chip shortage takes a toll -Breaking

by Mike Robinson

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Joyce Lee, Heekyong Yang

SEOUL (Reuters). South Korea’s Hyundai Motor Co posted a third-quarter profit, slightly missing analysts estimates. This was due to the continued global chip shortage that slowed vehicle shipments.

Hyundai reported a profit of 1.3 billion won ($1.10 million) in the July-September quarter, together with its affiliate Kia Corp. It had a 336 billion loss in the previous year’s same quarter due to a single expense related engine quality problems and recalls.

Refinitiv SmartEstimate compiled a slightly lower profit forecast than the average of 1.4 billion won.

The global chip crisis https://www.reuters.com/article/chips-shortage-explainer-int-idUSKBN2BN30J, triggered partly by surging demand for laptops and consumer electronics during the pandemic, has shuttered auto production lines globally this year and forced automakers to slash shipment forecasts.

Hyundai had previously stated that its year-over-year sales growth could slow in 2021 because of challenging business conditions and unstable supply of automotive chips.

After the release of its earnings results, shares in Hyundai Motor fell 0.8% to the downside.

$1 = 1,177.2300 won

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