SEOUL - Hyundai Motor Co. says its first-quarter net profit slid 28.8 percent from a year earlier to 417.6 billion won, or $347.4 million at current exchange rates, despite higher revenue.
Hyundai says the lower profit reflected increased r&d spending, the impact of a stronger won and the addition of funds to a reserve for warranty costs. Revenue rose 7 percent to $5.06 billion from a year earlier.
In contrast, affiliate Kia Motors Corp. says its first-quarter profit surged more than 40 percent from a year earlier on increased sales of higher-margin SUVs. Kia says it earned $118 million in the three months, up 43.2 percent, on an 18.3 percent gain in revenue to $2.5 billion.
Hyundai owns more than 60 percent of Kia.
Hyundai says it is counting on increased exports to the United States and Europe to offset stagnant sales at home, although the strengthening of the won could hurt overseas sales.
The company forecast full-year revenue of $23.5 billion, up from $21.9 billion, on worldwide sales of 1.82 million vehicles, an increase of 100,000 units.
Hyundai spokesman Oles Gadacz says the automaker was shifting to a richer vehicle mix of SUVs and large sedans in the U.S. market. Its bread-and-butter models in the United States are compact and mid-sized vehicles.