The third quarter proved to be one of the toughest for South Korea’s top automaker Hyundai Motor Co. battered by production disruption from lengthy strikes and natural disasters on top of depressed global demand, resulting in year-on-year plunge of 29 percent to the smallest-ever profit at least for the last six years.

Hyundai Motor in a disclosure reported an operating profit of 1.1 trillion won ($941.9 million) for July - September period, down 29 percent from a year ago, in its worst quarterly performance since it disclosed quarterly financial statements in compliance with the adoption of the International Financial Reporting Standards from 2010. The figure also underperformed the market consensus by more than 200 billion won.

Sales slipped 5.7 percent to 22.08 trillion won in the same period. The automaker shipped 1,084,674 units in the third quarter, 3.3 percent less than a year ago.

For the first nine months this year, the carmaker sold 3,477,911 units at home and abroad, down 1.7 percent on year.

The ratio of operating profit to sales also fell to the all-time low of 4.8 percent in the third quarter, slipping further from 6.6 percent of the first half.

Shares of Hyundai Motor closed at 137,500 won on Wednesday, down 500 won, or 0.36 percent, from the previous session.

The net income in the January - September period slipped 6.6 percent on year to 4.6 trillion won. Operating profit slid 13.8 percent to 4.1 trillion won. Sales edged up by 2.9 percent to 69.1 trillion won.

Strikes by local factory workers protesting to next year’s wage terms disrupted production throughout the third quarter. “The strikes came as currencies and demand in emerging markets remained weak,” said Choi Byeong-Cheol, the firm’s chief financial officer (CFO) during a conference call.

The automaker hopes it could make some amends in the fourth quarter through releases of new Grandeur at home and China-tailored vehicle Verna Yuena from the company’s new plant in China.

The company on Monday said it would cut executive-level salaries by 10 percent until next year as a part of cost-saving efforts.

By Lee Seung-hoon

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