2016.10.2605:58:00UTC+00​Hyundai Motor Posts 29% Slump in Quarterly Profit

Hyundai Motor Co. posted its lowest quarterly profit over four years after labor strikes dented production and a stronger Korean currency undermined overseas earnings.

Falling short of consensus estimates, the carmaker's operating profit dropped 29% to 1.07 trillion won during the third quarter, compared to a predicted 1.22 trillion won profit Net income posted a decline of 9.6% to 1.06 trillion won, missing the estimated 1.23 trillion won. Revenue also fell 5.7% to 22.08 trillion won. Deliveries came in at 3.54 million units during the first nine months, significantly below its set delivery goal of 5.01 million vehicles in the given period.

In September, South Korea's largest automaker saw its first full-scale labor strike in over 12 years after a string of temporary walkouts that began in July, before the union and management reached an accord regarding wages this month. The interruption caused to a production loss of around 140,000 vehicles worth around 3 trillion won. The strong Korean won also eroded repatriated earnings.

The dismal quarterly results comes after the automaker announced its executives will take a 10% cut in wages this month given the critical setbacks the company faces.

Hyundai's shares lost 1.1% to 136, 500 won in Seoul.