Hyundai Profit Falls as Weak Auto Demand, Labor Unrest Weigh -- Update

Hyundai Motor reported weaker second-quarter earnings as global auto demand cooled and labor unrest intensified. The automaker, South Korea’s largest by size, posted net profit of 2.888 trillion won (about $1.96 billion) for April–June, down 11% year over year, and beating a FactSet consensus of 2.661 trillion won. Revenue rose 1.9% to a record 49.215 trillion won, but operating profit fell 21% to 2.851 trillion won, pressured by sluggish sales, higher raw-material costs, and supply disruptions. In South Korea and Europe, wholesale vehicle sales dropped 16% and 11%, respectively. Hyundai’s unionized workers staged partial walkouts for a second straight week, doubling strike hours to four per shift, seeking higher wages and job protections. The company said hybrid demand and currency helped revenue. Analysts also cited a delayed demand recovery and the ongoing strike as potential headwinds.