Investing.com-- Hyundai Motor (KS:005380) clocked stronger-than-expected first quarter earnings on Thursday, as the South Korean automaker benefited from increased purchases before the imposition of steep U.S. import tariffs.
Hyundai’s operating profit rose 2% to 3.63 trillion won ($2.5 billion) in the three months to March 31, the company said in a statement. This print was higher than the 3.55 trillion won estimated by Bloomberg.
Revenue also rose 9.2% to 44.4 trillion won.
The company, along with affiliate Kia Motors, is the world’s third largest automaker by volume. It benefited from a weakening Korean won in the first quarter, given that a bulk of its earnings come from overseas sales.
But this leaves Hyundai (OTC:HYMTF) heavily exposed to U.S. President Donald Trump’s trade tariffs. Trump had earlier this year imposed a 25% duty on all foreign automobile imports.
Hyundai benefited from anticipation of Trump’s tariffs in the first quarter, as potential customers brought forward their purchases to avoid Trump’s duties.
The automaker also announced a $21 billion expansion in the U.S. to help avoid the impact of Trump’s tariffs.