Kia Motor Q2 net profit down 27.1%

[SEOUL] South Korea's Kia Motors on Friday reported a 27.1 per cent plunge in net profit, despite an increase in sales, with margins hurt by a stronger won.

Net income came to 746.5 billion won (S$877.5 million) in the April-June period, down from 1.024 trillion won a year earlier, the second largest South Korean automaker said in its regulatory filing.

Operating profit was also down 15.5 per cent on-year at 650.7 billion won.

The company sold 777,112 cars in the quarter, up 0.2 per cent from a year earlier, while sales rose 3.2 per cent to 12.44 trillion won.

Kia Motors said market situations were expected to remain unfavourable in the second half of this year due to slow demand in emerging markets.

The company said profitability would increase in the third quarter with the launch of upgraded models of its flagship K5 passenger cars and Sportage utility vehicles.

Kia is the affiliate of South Korea's largest automaker, Hyundai Motor Co., which reported a 23.8 drop in net profit on Thursday.

AFP