Peugeot and Citroen maker PSA Group beats analyst expectations with a new profitability record at its core manufacturing division. But the going is slower for its Asian competitor, Hyundai, which posts its smallest quarterly net profit in five years. Ciara Lee reports.
Hyundai's smallest quarterly profit in five years Second-quarter net profit halved from a year ago to $729 million - its 14th straight year-on-year fall The South Korean firm - which together with affiliate Kia Motors is the world's No.5 automaker - warns the second half of 2017 will continue to be challenging. Political headwinds have hit sales in China and slow U.S. demand continues to hurt. (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "Because of the strength of the US economy relative to Europe since the financial crisis U.S., auto sales have been very good. And now we're starting to see them decline, and we're looking at year over year declines in U.S. auto sales. Obviously completely opposite to that is that actually in Europe, where car sales have been pretty lacklustre, in concert with the improvement in the European economy, we're now expecting car sales to rise in Europe." Right on cue - PSA Group - increasing its sales and profit in the first half of the year. The maker of Peugeots and Citroens saw net income rise 3.6 percent to 1.26 billion euros PSA has rebounded from near-bankruptcy and a government-backed bailout in 2014. The French carmaker says stronger pricing more than made up for weaker sales volumes in Europe and China. Its market-share decline - particularly in Europe - wiped 92 million euros from profit. But its product mix added 456 million euros and pricing another 41 million - both helped by a flurry of new model launches. And putting it firmly back in the driving seat.