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Hyundai reports 28% drop in profit

Hyundai reports 28% drop in profit
# 22 January 2009 14:19 (UTC +04:00)
Hyundai Motor Co., South Korea’s largest automaker, said fourth-quarter profit tumbled 28 percent, missing analysts’ estimates, as lower contribution from overseas units, and higher marketing and warranty costs damped earnings. Shares fell to the lowest in three weeks, Bloomberg reports.
Net income totaled 243.6 billion won ($177 million) in the three months ended December. That missed the median estimate of 510.3 billion won according to a Bloomberg survey of 11 analysts. Sales rose 1.1 percent to 8.83 trillion won, the Seoul-based automaker said in an e-mailed statement today.
Operating profit slid 8.9 percent to 581 billion won, as Hyundai spent more on marketing to woo reluctant car buyers and the weak won raised warranty costs for cars sold overseas. Operating profit is defined as sales minus the cost of goods sold and administrative expenses.
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