Europe

Hyundai Motor reports 12 percent fall in 1Q earnings

  • People walk under a billboard advertising Hyundai Motor Co.'s Genesis in Seoul, South Korea, Tuesday, April 26, 2016. Hyundai Motor Co. says its first-quarter net profit has dropped 12 percent over a year earlier as global sales declined. (AP Photo/Ahn Young-joon)

    People walk under a billboard advertising Hyundai Motor Co.'s Genesis in Seoul, South Korea, Tuesday, April 26, 2016. Hyundai Motor Co. says its first-quarter net profit has dropped 12 percent over a year earlier as global sales declined. (AP Photo/Ahn Young-joon)  (The Associated Press)

  • The logo of Hyundai Motor Co. is seen on a vehicle displayed at the company's showroom in Seoul, South Korea, Tuesday, April 26, 2016. Hyundai Motor Co. says its first-quarter net profit has dropped 12 percent over a year earlier as global sales declined.(AP Photo/Ahn Young-joon)

    The logo of Hyundai Motor Co. is seen on a vehicle displayed at the company's showroom in Seoul, South Korea, Tuesday, April 26, 2016. Hyundai Motor Co. says its first-quarter net profit has dropped 12 percent over a year earlier as global sales declined.(AP Photo/Ahn Young-joon)  (The Associated Press)

  • An employee of Hyundai Motor Co. walks by vehicles displayed at the company's showroom in Seoul, South Korea, Tuesday, April 26, 2016. Hyundai Motor Co. says its first-quarter net profit has dropped 12 percent over a year earlier as global sales declined.(AP Photo/Ahn Young-joon)

    An employee of Hyundai Motor Co. walks by vehicles displayed at the company's showroom in Seoul, South Korea, Tuesday, April 26, 2016. Hyundai Motor Co. says its first-quarter net profit has dropped 12 percent over a year earlier as global sales declined.(AP Photo/Ahn Young-joon)  (The Associated Press)

Hyundai Motor Co. says its first-quarter net profit has dropped 12 percent over a year earlier as global sales declined.

South Korea's largest automaker said on Tuesday its January-March net income was 1.7 trillion won ($1.5 billion), compared with 1.91 trillion won a year earlier.

The results were better than expected: Analysts expected 1.53 trillion won according to FactSet, a financial data provider.

Sales rose 7 percent while operating profit dropped 16 percent. The maker of the Genesis and Sonata sedans has seen its operating income fall year-on-year in the past seven quarters.

During the first three months of this year, Hyundai's vehicle sales were hit by a decline in exports and lower sales in emerging markets like China, Russia and Brazil.