Hyundai Motor Q1 profit surges on favourable currency rates

Hyundai Motor Co posted a 19% rise in first-quarter profit as favourable exchange rates help fend off damage from a jump in raw material costs and a drop in sales caused by the prolonged global chip shortage.

Net profit climbed to 1.6 trillion won ($1.28 billion) for the January-March period, beating the 1.3 trillion won threshold set a year earlier.

Analysts had estimated a 1.4 trillion won profit drawn from 15 analysts.

The South Korean won was nearly 7% weaker against the U.S. dollar in January-March than the same period a year earlier, boosting the value of earnings garnered abroad.

Hyundai’s global vehicle sales, however, slid nearly 10% during the quarter, as the chip shortage slowed production.

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