( Seoul, Korea ) - Hyundai Motor Co. saw a 5.3 percent decline in 2006 unit sales to 1,611,000 units while sales revenues, affected by the strengthening Korean won, declined a 0.2 percent to 27.335 trillion won.
Drags on performance included increased costs for materials, particularly non-ferrous metals labor and the amortization of new car development. The successful implementation of cost reduction through roductivity enhancements at the factory level and other positive factors such as an enriched sales mix in Korea and Europe and a steady rise in shipments of knock-down assembly kits.
The operating profit fell by 10.8 percent to 1.234 trillion won while on a net basis, the profit dropped 35 percent to 1.526 trillion won. The Korean market accounted for 11.839 trillion won in revenues, representing a 7.4 percent improvement over the prior year while revenues from export sales dropped by 5.3 percent to 15.496 trillion won owing to an appreciation of the Korean won against the US dollar and Euro.
In 2007, Hyundai´s Korean operations are targeting a 13.9 percent increase in revenues to 31.134 trillion won based on a unit sales goal of 1,715,000 units, a 6.5 percent growth over the prior year.
Overseas plants will hike production by 15.1 percent to 1,020,000 units while their revenues will grow by 13.4 percent to 11.231 trillion won.
On a global basis, the company is aiming for a 9.5 percent hike in sales volume to 2,735,000 units and a revenue target of 42.365 trillion won, up 13.8 percent over 2006.
Visit http://ir.hyundai-motor.com/eng/index.html for a detailed report on the fiscal 2005 business results.
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