Hyundai Mobis Q1 net falls 4.2 pct on FX losses
SEOUL-- Hyundai Mobis Co., South Korea's biggest auto parts maker by sales, on Tuesday posted a 4.2 percent on-year drop in first-quarter net profit due to foreign exchange losses and lower demand from China.
Net profit for the three months that ended on March 31 fell to 761.9 billion won (US$674 million) from 795.2 billion won a year earlier, the company said in a statement.
The won's strength against the dollar in the first quarter weighed on the earnings result, the company said.
The won strengthened to an average of 1,154.28 won against the greenback in the first quarter from 1,201.44 won a year earlier, according to Bank of Korea data. A strong won lowers the value of dollar-denominated overseas earnings by a South Korean when its gains are repatriated.
Operating profit also declined 6.9 percent year-over-year to 668.7 billion won in the first quarter from 718.4 billion won. Sales were down 0.8 percent to 9.27 trillion won from 9.34 trillion during the same period, the company said.
"Increased sales in the after-sales service business in the United States and Europe helped keep the quarterly results from falling further," it said.
Meanwhile, Hyundai Mobis said in regulatory filing that it will invest 23 billion won in Hyundai Motor Group China this month, bringing its total investment in the affiliate to 43.1 billion won.
Hyundai Mobis is the flagship affiliate of South Korea's automotive conglomerate Hyundai Motor Group, the world's fifth-biggest carmaker by sales.
Source: Yonhap News Agency