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Investing.com-- Hyundai Motor (KS:005380) clocked a slightly stronger than expected second-quarter profit on Thursday, although earnings still declined as the South Korean automaker grappled with headwinds from increased U.S. trade tariffs.
Hyundai (OTC:HYMTF) booked a June-quarter operating profit of 3.6 trillion won ($2.64 billion), down 15.8% from the same period a year ago. But the print just edged past Reuters and Bloomberg estimates of 3.5 trillion won.
Revenue came in at 48.3 trillion won, up 7.3% from last year and higher than estimates of 47 trillion won.
Hyundai’s U.S. sales still rose 10.3% in the second quarter, in part driven by advance buying before President Donald Trump’s 25% tariff on automobiles took effect.
But sales in other regions weakened, with Indian sales falling nearly 10%, while Chinese sales slid nearly 30% amid tough, homegrown competition in both markets.
Sales in South Korea, which is the company’s second-largest market after the U.S., rose 1.5%.
The company now faces increased costs in selling cars in the U.S., after Trump imposed a 25% tariff on all autos and auto part imports earlier this year. South Korea faces an additional 25% tariff on all imports from August 1, which could add even more pressure on Hyundai’s bottom-line.
Seoul was seen racing to clinch a trade deal with Washington in recent weeks, although an agreement did not appear close.
Hyundai committed a $21 billion investment in the U.S. over the next three years, in part to appease the Trump administration and also to further hedge its business against Trump’s tariffs.
The company, along with associate Kia Corp (KS:000270), is the world’s third-largest automaker in sales.