News Summary: Hyundai logs 15 pct 1Q profit drop

Hyundai Motor's 1Q profit declines 15 percent as domestic production, sales fall

Associated Press

LABORIOUS QUARTER: Hyundai Motor Co.'s first quarter net profit fell 15 percent as a labor dispute slowed car production in South Korea.

PUNCHING OUT: Last month, Hyundai adopted new schedules for workers to remove overnight shifts but has yet to reach an agreement with its labor union on how to compensate workers for weekend and holiday shifts. The company's Ulsan plant has not produced any vehicles during weekends since March. Exports of locally produced vehicles during the first quarter dropped 11 percent over a year earlier.

MULTIPLE FRONTS: Another dent to its bottom line came from foreign exchange rates. Sales costs increased from the local currency's weakness over a year earlier, the company said. Fears of an outbreak of violence on the Korean Peninsula, stemming from North Korea's recent threats, eroded the value of the South Korean won.

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