UPDATE 1-Despite strikes, Hyundai Motor makes $2 bln profit in Q3
* Q3 net profit 2.17 trln won vs 2.13 trln won fcast
Q3 revenue up 3.6 pct to 19.6 trln won
* Sees European autos market falling 8 pct this year
* Hyundai shares up 3.2 pct in Seoul; down 13 pct this month
By Hyunjoo Jin
SEOUL, Oct 25 (Reuters) - South Korea's Hyundai Motor Co reported July-September net profit of $1.97 billion, up 13 percent on last year and in line with market forecasts, with growth held back by labour strikes in South Korea even as overseas sales rose.
Hyundai, which with affiliate Kia Motors is the world's fifth-biggest car maker, said its total July-September shipments increased by less than 1 percent as it squeezed production capacity abroad to make up for lost output in South Korea, where it produces nearly half of the vehicles it sells globally.
The company, led by founding family member Chung Mong-koo, bucked an industry slump in Europe and drove up sales in China as Japanese rivals were hit by a popular backlash in a dispute over islands in the East China Sea.
Hyundai warned on Thursday that it expects the European car market to shrink by 8 percent this year.
The industrial action in South Korea in July and August was Hyundai's costliest ever - with lost production of more than 82,000 cars worth $1.5 billion. Hyundai started a new plant in China in June, and added a third shift at a U.S. factory last month, helping ease some of its capacity constraints.
A Reuters poll of 13 analysts had predicted on average a third-quarter net profit of 2.13 trillion won, versus 1.92 trillion won a year ago, and 2.55 trillion won in the second quarter.
July-September revenue rose 3.6 percent to 19.6 trillion won ($17.76 billion).
Hyundai shares jumped after the results on Thursday, trading up 3.2 percent at 225,000 won each by 0516 GMT.
The stock slumped more than 13 percent this month to Wednesday's close, while the benchmark KOSPI index lost 4 percent. Over the same period, major Japanese rivals Honda Motor Co Ltd, Nissan Motor Co Ltd and Toyota Motor Corp gained around 7 percent, 4 percent and 2 percent respectively.