Hyundai Q3 profit misses due to engine-defect charges

Net profit was 427 billion won ($364.75 million), compared with the average 684 billion profit estimate of analysts based on I/B/E/S Refinitiv data. Reuters

South Korea's Hyundai Motor said on Thursday its third-quarter net profit rose 59%, missing analysts' consensus, after it set aside additional costs to address potential engine defects in the U.S. and home markets.

Net profit was 427 billion won ($364.75 million), compared with the average 684 billion profit estimate of analysts based on I/B/E/S Refinitiv data.

That also compared with the 269 billion won booked in the same period a year earlier when its profit took a dive because of 500 billion won in costs related to engine and airbag quality issues.

Hyundai Motor said earlier this year that it has earmarked another 600 billion won to settle some of U.S. engine-related lawsuits, install software to detect potential engine failures and offer lifetime warranties for faulty engines. ($1 = 1,170.6800 won)

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