South Korea's Hyundai Motor profit misses analysts' estimates

SEOUL South Korea's Hyundai Motor Co swung to a profit in the third quarter but slightly missed analysts' estimates as the ongoing chip shortage drove down shipments of vehicles.

Kia Corp, which is among the top 10 automakers in the world by sales, reported a net profit of 1.3 trillion won US $1.10 billion for the July-September quarter. In the same period a year earlier it posted a loss of 336 billion won when it was hit by a one-time expense related to engine quality issues and recalls.

The profit slightly missed an average analyst forecast of 1.4 trillion won compiled by Refinitiv SmartEstimate.

com article chips-shortage - explainer-int - idUSKBN 2 BN 30 J, triggered partly by surging demand for laptops and consumer electronics during the pandemic, has shuttered auto production lines globally this year and forced automakers to slash shipment forecasts.

Hyundai previously said its on-year sales growth might slow in the second half of 2021 due to unstable business conditions, including challenging supplies of automotive chips.

Shares of Hyundai Motor were flat after the firm published its earnings results, compared with a 0.8 per cent rise in the broader market KOSPI.