Hyundai Mobis Q2 net profit slips 6.3 pc on lower equity gains

Seoul, July 25 Hyundai Mobis, South Korea's leading auto parts maker, said on Friday its second-quarter net profit fell 6.3 percent from a year earlier due to reduced equity gains from affiliates.

Net profit for the three months ended in June declined to 934.4 billion won ($680.8 million) from 997.6 billion won a year earlier, the company said in a regulatory filing, reports Yonhap news agency.

"A sizable equity gain from Hyundai Motor Co. was reflected in the second quarter of last year, as the carmaker reported strong earnings results," a company spokesperson said.

Hyundai Motor reported a 22 percent on-year decline in second-quarter net profit to 3.25 trillion won, affected by newly imposed U.S. import tariffs that took effect in April.

On April 2, the U.S. government began imposing 25 percent tariffs on all imported vehicles.

Hyundai Mobis holds a 21.86 percent stake in Hyundai Motor.

Operating profit rose 36.8 percent on-year to 870 billion won in the second quarter from 636.1 billion won, while sales climbed 8.7 percent to 15.93 trillion won from 14.65 trillion won.

"The improved operating result was driven by a better product mix -- led by robust sales of high-end electronic components -- and a weaker won against the U.S. dollar, which boosted the repatriated value of overseas after-sales component revenue," the company said.

In the January-June period, net income rose 5.7 percent to 1.96 trillion won from 1.86 trillion won a year earlier.

During the first half, the company secured US$2.12 billion worth of orders from global clients, excluding Hyundai Motor Co. and Kia Corp., achieving 30 percent of its annual target of $7.45 billion amid growing uncertainty over U.S. tariff policies.

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

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