Seoul - South Korean carmaker Hyundai Motor Co said Thursday that its net profits declined 42.7 per cent in the first three months of 2009, owing to a global drop in demand and rising marketing costs. Net profit fell to 224.9 billion won (166.7 million dollars) from 393 billion won in the January-to-March quarter of 2008, South Korea's leading carmaker said.

Operating profits were down 71 per cent to 153.8 billion won, and sales shrunk by 26.4 per cent to 6.03 trillion won.

The results were in line with market expectations. In the fourth quarter of 2008, Hyundai's net profits dropped by 28 per cent year-on-year to 243.6 billion won.

Market conditions remained difficult, Hyundai said in a statement. The company suffered slowing sales both at home and in its export markets. Global sales figures were down 28.6 per cent to 316,000 units in the first quarter with exports down to
187,000 units.

"From the second quarter, we expect economic stimulus measures and support plans in some nations for the auto industry to have some positive effect on the sector," Hyundai chief financial officer Tae Hwan was quoted as saying by South Korea's Yonhap news agency.

Like other large carmakers, Hyundai cut production to deal with sales being dragged down by the global downturn. Production in its three South Korean plats was cut by 25 to 30 per cent with the exception of compact car production located at its main Ulsan plant.

Hyundai did not release sales predictions for 2009. The Hyundai-Kia-group, which also includes Kia Motors , is the world's fifth-largest carmaker. (dpa)