Hyundai warns chip shortage will hit third-quarter sales

Hyundai Motor Co., Ltd. warned that a prolonged chip shortage in the automotive industry would continue to hurt sales in the third quarter after recording the highest quarterly profits in seven years.

Korean companies were able to mitigate the effects of a global chip shortage after stockpiling parts last year, Cutting output Of a model that hasn’t been very popular since April as it runs out of stock.

Hyundai Motor expects that some parts will continue to be in short supply, but that the shortage will gradually ease from the third quarter. The company said Thursday that it had completed an order for chips needed for production next year.

“The chip crunch was the most serious in May and June. We tried to minimize production interruptions by adjusting production plans frequently,” said So Gang-hyun, vice president. Told to. “Some chips remain in short supply, but the situation will improve from the third quarter.”

The shortage of semiconductors used in everything from power steering to antilock braking has forced automakers around the world to reduce output, protracted by supply chain disruptions and high demand for electronics during the coronavirus pandemic. I will.

Hyundai Motor has warned that the emergence of coronavirus variants and rising raw material prices could cast a shadow over earnings in the second half of the year as industrial demand recovers slower than expected.

The warning more than tripled modern operating profit to 18.9 trillion won (1.64 million won) in the April-June quarter as strong demand for high-margin sport utility vehicles offset the impact of chip crunch on production. It was issued after reaching (10,000 dollars). Sales increased by nearly 40% year-on-year to reach 30.3 trillion won.

Analysts expect the momentum to continue this year as Hyundai launches new SUVs and more. Electric car As the shortage of components gradually improves.

Hyundai Motor, along with its affiliate Kia, is the world’s fifth-largest automaker and plans to increase production of the new Ioniq 5 electric crossover in the third quarter by expanding the production line at its Asan plant in South Korea. Said.

Hana Financial Investment analyst Son Sun-jae said in a recent report that “the company will maintain high margins until the first half of next year as it expands shipments and launches new models.”

South Korean steel group POSCO said earlier Thursday that demand from automakers declined in the second quarter due to a chip shortage, which was driven by a recovery in world trade and a surge in new orders. It was offset by a surge in demand from the existing shipbuilding companies.

Hyundai warns chip shortage will hit third-quarter sales Source link Hyundai warns chip shortage will hit third-quarter sales

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