Hyundai Motor Co’s third-quarter net profit plunged by a shocking two-thirds, hit by a $440 million one-off charge related to U.S. recalls and sending its shares tumbling to near nine-year-lows on Thursday.
The unexpected costs relating to Hyundai’s engine recalls came on the heels of mounting U.S. pressure to respond to reports of vehicles catching fires.
The recall headache adds to a plethora of issues at Hyundai, which had counted on new SUVs to engineer a recovery following five straight years of annual profit declines stemming from weak sales in its key U.S. and Chinese markets.
Quarterly net profit slid to 269 billion won ($236 million), the lowest in more than seven years and well below a SmartEstimate of 831 billion won, according to Refinitiv data. SmartEstimates give more weight to recent estimates by analysts who are more consistently accurate...
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