Amidst slow sales and an economic downturn, Hyundai Motor Company managed to post a record quarterly profit of $650 million in the second quarter.
Even though Hyundai’s record profit is impressive, not all of the success can be attributed purely to Hyundai. Some of the South Korean company’s success this quarter can be attributed to a weaker won currency and government stimulus packages around the world. Analysts expected Hyundai would post a profit, but only half of what was announced.
“Hyundai’s earnings came out quite strong, but that was also helped by governments’ stimulus plans,” said Nara Lim, a market analyst at Hanwha Securities. “As global economies, including that of the United States, are still weak, investors are wondering if second half numbers will post as strong as seen in the second quarter.”
For 2009, Hyundai expects its sales to rise by eight percent, and its U.S. market share to grow even further. Hyundai’s improved products and brand image have helped it gain considerable traction in the U.S. market, where it was once known for building economy cars.
Success in other export markets, including China and India, has also benefited the company. In the first half of 2009, Hyundai has raised its Chinese sales forecasts twice.