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But in a mixed outlook, the company said it now expects to sell only 4.01 million vehicles overall this year, down 7% from the 4.32 million previously forecast, as the auto industry continues to struggle with supply chain disruptions involving chips and other components.
“While Hyundai Motor expects a gradual recovery from global chip and component shortages in the fourth quarter, the company anticipates external uncertainties to continue, including inflation, supply chain disruption and fluctuation in raw material prices due to geopolitical issues,” it cautioned in a statement.
Despite that upheaval, the company raised its full-year revenue growth forecast to 19-20% from the 13-14% it previously expected. It now estimates its operating profit margin will be 6.5-7.5%, up from the 5.5-6.5% previously forecast.
Hyundai, which together with affiliate Kia Corp is the among the world’s top five automakers by sales, said third-quarter operating profit fell by 3% due to a 1.36 trillion won ($906 million) provision to pay for costs related to engine quality issues.
The provision, announced last week, amounted to more than half of estimated third-quarter net profit of 2.4 trillion won drawn from 17 analysts.
Revenue for the quarter jumped 31% to 37.7 trillion won, below the 36 trillion won analysts had expected.
Shares in Hyundai Motor, which together with affiliate Kia Corp is the among the world’s top 5 automakers by sales, were down 3% as of 0537 GMT, compared with a 0.8% rise in the broader market KOSPI.
($1 = 1,434.4400 won)
