By Sohee Kim and Joyce Lee
SEOUL (Reuters) - Hyundai Motor Co (KS:005380) on Thursday said its net profit fell 23 percent in the third quarter from a year earlier, its seventh quarterly drop, hit by slowing China sales and aggressive global incentives which outweighed currency gains.
The South Korean carmaker, which together with affiliate Kia Motors (KS:000270) ranks fifth in global auto sales, said net profit was 1.2 trillion won ($1.1 billion) in July to September, down from 1.5 trillion won a year earlier.
That missed an average estimate of 1.5 trillion won from 12 analysts polled by Thomson Reuters I/B/E/S.
Hyundai has struggled to boost lackluster sales in China and the United States, its two largest markets.
"During the third quarter, Japanese companies utilized the weak yen to focus marketing in the U.S. market. We increased incentives in response," Chief Financial Officer Lee Won-hee said during an earnings conference.
Hyundai and Kia slashed prices of sport-utility vehicle (SUV) models in China and replaced three China executives in August, after sales were hit especially hard in a sharp slowdown in the world's largest auto market.
Hyundai's shipments in China fell 17.4 percent from a year earlier to 214,414 vehicles, the weakest since the second quarter in 2012, Hyundai said previously.
Analysts ahead of the results said Hyundai's sales hit bottom in the third quarter and expected them to regain momentum starting in the fourth quarter, thanks to new model launches as well as the won's weakness against the dollar.
The won dropped 12.2 percent against the dollar between July and September from a year earlier in average value terms.
Hyundai's shares were down 1.8 percent as of 0428 GMT, while the broader index 0.9 percent lower.
($1 = 1,137.0000 won)