Hyundai Motor Co. said yesterday its third-quarter net profit tumbled 47.1 percent to 282.8 billion won as production dwindled during the recent strike while the Korean currency strengthened.
Hyundai's affiliate Kia Motors Corp. fell into the red for the first time since 1998 with a net loss of 43.9 billion won in the three months to September for similar reasons.
The Korean won climbed 7.2 percent in the third quarter, making Hyundai-Kia cars more expensive abroad while Japanese rivals such as Toyota Motors Corp. benefited from the yen's decline.
"Due to slow production, Hyundai-Kia were burdened more by fixed expenses such as research & development, taxes and depreciation costs," said Hanwha Securities Co. analyst Ahn Soo-woong. "The carmakers also paid their workers more incentives than expected after the strikes ended."
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