The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022.
The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. Reuters / ANDREW KELLY

Hyundai Motor Co on Monday posted a 19% rise in first-quarter profit as favourable exchange rates offset a jump in raw material costs and a drop in sales caused by the prolonged global chip shortage.

Net profit climbed to 1.6 trillion won ($1.28 billion) for the January-March period.

That compares with 1.3 trillion won a year earlier and a Refinitiv SmartEstimate of 1.4 trillion won profit drawn from 15 analysts.

"Robust sales of SUV and Genesis luxury models, declining incentives, and a favorable foreign exchange environment helped lift revenue in the first quarter despite the slowdown in sales volume amid an adverse economic environment," Hyundai said in a statement.

The South Korean won was nearly 7% weaker against the U.S. dollar in January-March than the same period a year earlier, boosting the value of earnings garnered abroad.

Hyundai's global vehicle sales, however, slid nearly 10% during the quarter, as the chip shortage slowed production.

Shares in the automaker was trading down 1.1% after the results compared with a 1.5% decline in the benchmark KOSPI.

Hyundai and affiliate Kia Corp together form the world's fourth-largest automotive group by sales.

($1 = 1,249.1500 won)