SEOUL– Hyundai Motor Co. said Monday its third-quarter net profit fell 5 percent from a year earlier as it reflected massive provisions for after-sales services involving the Theta II engine in the quarterly results.
Net profit for the three months ended in September came to 1.41 trillion won (US$980 million), down from 1.48 trillion won during the same period of last year, the company said in a statement.
Hyundai put aside provisions worth 1.36 trillion won to resolve additional complaints involving the Theta II gasoline direct injection engine and offer other customer services in the third quarter.
Operating profit also fell 3.4 percent to 1.55 trillion won in the third quarter from 1.60 trillion won a year ago. Sales rose 31 percent to 37.7 trillion won from 28.87 trillion won during the same period.
The South Korean carmaker revised down its global sales target to 4.01 million units for the year from 4.32 million units it set early this year.
It also lowered its planned capital expenditure to 8.9 trillion won this year from 9.2 trillion won amid increasing external uncertainties.
Source: Yonhap News Agency