Profits down 15% at Hyundai

<p>Hyundai’s profits have fallen by 15 per cent.</p>

Hyundai's share price has been hit by the release of the latest financial results for the Korean car manufacturer, which show profits fell by 15 per cent in the first quarter of the year.

The company announced net profit came in at 2.1 trillion Korean won (£1.2 billion), which is compared with 2.5 trillion won in the same period a year ago. This is despite the fact the Korean won is up 4.5 per cent against the dollar.

Analysts stated that Hyundai has been hurt by the unfavourable exchange rate environment over the course of the last few months, while the company's ability to increase capacity has been affected by industrial action.

Hyundai's vehicles have become less price competitive in the last year when compared to their Japanese rivals because of the growth of the won against the dollar.

Stocks in Hyundai dropped by 50 points – or 0.2 per cent – on the back of the news it lost 15 per cent of its profits between January and March this year.

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