Hyundai Glovis Co., the logistics unit of Hyundai Motor Group, said Thursday its first-quarter net profit fell 2.8 percent due mainly to the won's weakness against the dollar.
Net profit for the three months ended March 31 slid to 283.63 billion won (US$212 million) from 291.93 billion won during the same period of last year, the company said in a statement.
"The won strengthened against the dollar in the first quarter from a quarter earlier, which weighed on the bottom line," the statement said.
The dollar fell to an average of 1,275.58 won in the first quarter from 1,359.26 won the previous quarter, according to data from the Bank of Korea.
While focusing on its mainstay vehicle shipping services, the company said it will expand its electric vehicle battery recycling, smart logistics solutions and mobility platform businesses in a diversification strategy.
Hyundai Glovis expects to report improved earnings results in the second quarter as vehicle shipping volumes and shipping charges are on the rise. The weakening won against the greenback will also be of help, it said.
Operating profit declined 4.6 percent on-year to 406.57 billion won in the March quarter from 426.31 billion won, while sales rose 0.1 percent to 6.3 trillion won from 6.29 trillion won during the same period.
Hyundai Glovis used to earn most of its sales from its affiliates Hyundai Motor Co. and Kia Corp.
But it raised the proportion of its sales from other carmakers, domestic and foreign, to 56 percent in 2022 from 42 percent in 2017.
Source: Yonhap News Agency