27^th December, 2000

HMC forecasts year 2000 earnings of over $A28 Billion

With forecasted 2000 year global sales of 1.59 million cars and trucks, HMC (Hyundai Motor Company) is expecting earnings to reach $A 28.6 billion.

With improved sales in the domestic Korean market and record exports, HMC is forecasting total domestic sales to reach 710,000 vehicles and exports to top out at 880,000 units.

In the year when Hyundai’s automotive operations as HMC split off from the Hyundai Business Group conglomerate (August), HMC expects to record pre-tax profits of four per cent of earnings – around $A 1170 million. Additionally HMC’s debt to equity ratio will fall slightly to 128 per cent.

Overall 25 per cent increase
The forecast sees an overall increase of 25 per cent in sales from 1999 when HMC sold 1.26 million units. The domestic market shows a lower rate of increase for 2000 at 19 per cent whilst forecast exports are 30 per cent up on the 1999 actual figure of 673,000.

The earnings figure shows a 28 per cent increase on 1999 when the company reported earnings of $A 22.1 billion.