20000312

Hyundai earns

414bn won

in 1999

RECORDER REPORT

KARACHI: Hyundai Motor Company has announced its profit for the year 1999, which has reached 414 billion Korean won.

Hyundai, which has a joint venture with Pakistani company, Dewan Farooque Motors Ltd., released the official figures from Seoul after a stockholders meeting.

This is a healthy sign, especially after the crisis in Far East which badly hurt the regional economy.

With total vehicles sales for 1999 amounting to 1,268,354, earnings topped 14.2 trillion Korean won Ñ a 63 percent increase over 1998. Hyundai earned 9.1 trillion won from the sale of 989,046 passenger cars and 3.2 trillion Korean won from 279,308 commercial vehicle sales.

Total production in 1999 reached 1,269,542 vehicles, made up of 996,634 passenger cars and 272,908 commercial vehicles.

Major reduction in debt: The Co's Chairman Chung Mong-Koo revealed that during the year Hyundai had achieved a major reduction in debt with its debt to equity ratio falling from 458 percent at the end of 1998 to 129 percent by the end of 1999.

He said he was also pleased that the net profit figure showed a major turn-around from the company's first recorded loss of 33 billion Korean won in 1998.

The trend, he added was set to continue with the first two months of 2000 showing a further increase in sales over 1999 and the year's targets for sales considerably ahead of those achieved in 1999.

Hyundai is aiming to achieve total sales of 1.67 million units during the year with 720,000 sales in the domestic market and 950,000 sales in export markets.

Further range expansion and savings: He said Hyundai would continue to benefit from the expansion of its model range during 2000 and also from the synergy savings contributed by the continuing integration of the Hyundai and Kia operation.

The strong growth of exports would also continue to contribute to improving financial performance and he added that the management and workforce of Hyundai Motor Company was now focused on improving product quality and shareholder value.