Seoul- South Korean automaker Hyundai Motor Co on Thursday reported a 38-per-cent drop in third-quarter profits because of falling sales and strikes that caused drops in its production.

Net income fell to 264.8 billon won (187 million dollars) from 425.5 billion won in the same quarter in 2007.

Sales shrank 14.5 per cent to 6.1 trillion won.

Despite the decrease, the earnings were higher than analysts had expected, and Hyundai also held to its sales projection for the year of 33 trillion won.

As a result, Hyundai's stock rose in Seoul trading by 1.2 per cent to 50,700 won.

South Korea's largest automaker said it would concentrate in the fourth quarter on selling small, fuel-efficient cars, sales of which have helped the company to come through the plummeting car sales in its largest overseas market, the United States, where consumers were turning from large, petrol-guzzling models. (dpa)