South Korea based manufacturer of automotive Hyundai Motor Co. (KRX: 005380) reported its results for the third quarter of the year in which it fell short on what analysts’ were expecting from the company in the quarter.
In the third quarter ended September 30, the company reported a net profit of $1.10 billion (1.3 trillion won) which is slightly lower than the 1.4 trillion won which analysts had estimated for the company for the quarter.
The company attributed this slightly estimate miss to the global chip shortage which has significantly affected the automotive industry in some instances car manufacturers have been forced to suspend productions operations in their factories.
“Hyundai Motor expects that on-year sales growth might slow down for the rest of 2021 amid adverse business conditions caused by the unstable supply of semiconductor chips,” said the company.
Hyundai believes that the global chip shortage situation will run until the year ends or even continue into next year. The company says that it will have to take some time for normal production in the car industry to go back to normal.
In a similar quarter last year, the company posted a net profit of $336 billion won, it attributed this bad performance to engine quality related issues which resulted to vehicle recall costing the company a big one-time expense.