Hyundai Motor earnings surprise Q1: OP up 65% on qtr

South Korean auto giant Hyundai Motor Co. turned around stunningly in the first quarter after tasting its first quarterly net loss in the previous three-month period thanks to better-than-expected sales of new models and a weaker won.

Suggesting a far more positive outlook for the year, Hyundai Motor in a regulatory filing on Wednesday said its operating profit for the January-March period reached 824.9 billion won ($718 million) on a consolidated basis, jumping 64.6 percent on quarter and 21.1 percent from a year ago. The number beat market consensus of 770.2 billion won.

Sales fell 4.9 percent on quarter and rose 6.9 percent on year to 24 trillion won, also above the market estimate of 23.24 trillion won.

Its net balance delivered a greater surprise, swinging back to a profit of 953.8 billion won from a loss of 203.2 billion won.

The news sent Hyundai Motor shares 1.84 percent higher to close at 138,500 won on Wednesday in Seoul trading.

Operating profit stayed below 1 trillion won for the sixth consecutive quarter as sales remained lackluster in China, the world’s largest car market.

Sales of Beijing Hyundai Motor, a joint-venture between BAIC Motor and Hyundai Motor Company, plunged 18.4 percent on year to stop at 132,678 units, the lowest since the first quarter of 2009.

Hyundai Motor expects better figures moving forward as its new cars like all-new entry-level SUV Venue are scheduled to be released starting from the next quarter. Output of full-sized SUV Palisade will be bumped due to strong demand and all-new Sonata sedan began its delivery to customers this month. Genesis’ first SUV version GV 80 will start mass-production within this year.

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