Hyundai Motor Co. announced on Oct. 25 that its third quarter operating profit fell 76 percent from the same period last year to 288.9 billion won.
This is the lowest quarterly operating profit since the introduction of the new accounting standard in 2010.
Hyundai Motor made a conference call to announce its management performance in the third quarter of 2018 at its headquarters in Yangjae-dong, Seoul.
Sales for the third quarter reached 24.43 trillion won, up 1 percent compared to last year, but it failed to prevent a sharp decline in operating profit.
As a result, its operating profit ratio was a mere 1.2 percent, down 3.8 percentage points from the same period last year.
"Because of temporary cost factors such as expansion of World Cup marketing activities, recall of airbag controllers, and application of new engine diagnostics technology called 'KSDS' in the U.S., operating expenses increased and operating profit decreased," the company explained.