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Hyundai Motor’s third-quarter profit slumps as US tariffs weigh

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Hyundai Motor posted a 29% decline in third-quarter operating profit on Thursday, as United States (US) tariffs hurt the South Korean automaker

 

Hyundai, which together with its affiliate Kia is the world’s third-biggest automaking group by sales, booked an operating profit of 2.5 trillion Won ($1.76 billion) for the July-September period, down from 3.6 trillion won a year earlier.

It, however, met an LSEG Smart Estimate of 2.5 trillion Won ($1.76 billion), which is weighted towards analysts who are more consistently accurate. The automaker said US tariffs cost the company 1.8 trillion Won in the third quarter. The automaker had been disadvantaged as its vehicles were subject to a 25% tariff for exports to the US, its biggest market generating about 40% of revenue.

But that rate would be lowered in the coming months to 15% after Washington and Seoul reached a trade agreement on Wednesday. Hyundai Motor shares, which rallied earlier in the day after to the trade deal, pared gains, up 2.9%.

–Reuters–