Hyundai Mobis Q3 net rises, operating profit falls on US tariffs

Hyundai Mobis Co., South Korea's leading auto parts maker, said Friday its third-quarter net profit grew 1 percent from a year earlier, while operating profit fell more than 14 percent due to US import tariffs.

Net profit for the three months ended in September rose to 930.5 billion won ($651.4 million) from 921.2 billion won a year earlier, the company said in a regulatory filing.

"Favorable exchange rates and increased supply of module and core parts to global carmakers, as well as to Hyundai Motor Group's new dedicated EV manufacturing plant in Georgia, buoyed overall sales. But US tariffs on vehicle imports weighed on the bottom line," the company said.

In the third quarter, tariffs on Korean vehicles stood at 25 percent, significantly higher than the revised 15 percent applied to vehicles from Japan and the European Union.

On Wednesday, however, US President Donald Trump agreed to lower the auto tariffs on Korean vehicles to 15 percent during his summit with South Korean President Lee Jae Myung, as the two sides finalized details of Seoul's $350 billion investment pledge under a broader tariff agreement reached in July.

"The lower tariffs are expected to reduce uncertainties and help its key customers -- Hyundai Motor Co. and Kia Corp. -- compete on a more level playing field with rivals in the US market," the company said.

Hyundai Mobis currently derives about 90 percent of its parts sales from the two affiliates. It aims to increase the share of overseas parts sales from 10 percent to 40 percent by 2033.

The company holds a 21.86 percent stake in Hyundai Motor.

Operating profit fell 14.1 percent to 780.3 billion won in the third quarter from 908.6 billion won a year ago, while sales rose 7.4 percent to 15.03 trillion won from 14 trillion won.

In the January-September period, net income climbed 4.2 percent to 2.89 trillion won from 2.78 trillion won a year earlier. (Yonhap)