SEOUL (Bloomberg) -- Hyundai posted its lowest annual profit in five years after a slump in China deliveries overshadowed gains in Europe, the U.S. and South Korea.
Net income declined 13 percent to 6.42 trillion won ($5.3 billion) in 2015, the Seoul-based automaker said Tuesday.
Sales rose 3 percent to 92 trillion won. Hyundai's profit fell for a third straight year and the automaker missed its annual sales target for the first time since 2008 after deliveries in China slumped and unfavorable exchange rates cut earnings in Russia and Brazil.
The company has forecast sales growth this year will be the weakest since 2006 as it expects the economic slowdown to continue in China, its largest market by volume.
"You can say 2015 was a year of one bad news after another, to a point where it was almost depressing," said Lee Sang Hyun, an analyst at IBK Securities Co., before the earnings announcement. "This year, although there's hope that things may get better as demand picks up in China and unfavorable exchange rates in emerging markets calm down, it still isn't expected to be a huge improvement from the year earlier."
Deliveries in China declined last year for the first time since 2007 as a slowing economy and shift in consumer preferences to cheaper SUVs hurt demand for the automaker's sedan-heavy lineup.
Sales in Russia and Brazil dropped 3.2 percent and 2.7 percent, respectively, while European sales rose 11 percent to 470,130, according to data from industry association ACEA.