Latest Automotive News

Subscribe in a reader

Kia Motors says profit rises 36 per cent on cost cutting

Email   small font medium font large font


SEOUL, South Korea (AP) _ Kia Motors Corp., South Korea's second-biggest automaker, on Friday reported a 36 per cent rise in net profit for the second quarter on cost-cutting and strong domestic sales of the large-size Opirus sedan.

For the three months through June, Kia, an affiliate of Hyundai Motor Co., posted a net profit of 61.4 billion won (US$67 million), up from 45.1 billion won a year earlier.

``Increased domestic sales of the luxury sedan gave a boost to second-quarter results. About 2,000-2,500 units were sold a month, higher than 500 units (sold in a month) in the year-earlier quarter,'' said Kang Hyun-Geun, a company spokesman.

However, overall sales fell 7.3 per cent to 4.14 trillion won ($4.5 billion) from 4.46 trillion won a year ago.

The number of vehicles sold during the quarter slid 1.4 per cent to 289,334 units from 293,502 units in the same quarter in 2006.

The company's botton line did get a boost from the resumption of production at Kia's main Hwaseong plant, which was shut for a month in January for upgrading to produce the HM sport utility vehicle, the company said. The shutdown at the plant led to production losses of 22,000 Sorento midsize sport-utility vehicles.

``By launching the HM model later this year and wrapping up wage negotiations with the union as quickly as possible, Kia will try to post an operating profit for this year,'' Kia's Chief Executive Cho Nam-Hong said in a statement.

Kia's domestic market share fell to 22.2 per cent in the first half from 23.3 per cent a year ago.

Receive the latest automotive news by email!

Enter your email address:

Related news
SEOUL (AP) _ South Korea's biggest automaker Hyundai Motor Co. said Thursday its second quarter net profit rose 52 per cent from a year earlier on robust domestic demand and cost-cutting efforts. Hyundai ...
SEOUL (AP) _ Kia Motors Corp. posted its third straight quarterly loss Friday, hit by a stronger South Korean currency, production losses from a line retooling and marketing costs. Kia ...
Kia Motors Corp., South Korea's second-largest automaker, said Friday its third-quarter net loss widened from the year before on production losses due to labour unrest and a decline in sales. Kia Motors lost 55.1 ...
Hyundai Motor Co. and its affiliate Kia Motors Corp. on Monday blamed a strong Korean won and production losses from summer strikes for poor third-quarter earnings results. Hyundai, which together ...
SEOUL, South Korea (AP) _ South Korean automaker Kia Motors Corp. said Monday it resumed partial production at its main domestic plant amid continuing labour unrest by employees of a subcontractor. ``The labour ...
Tata Motors Ltd., India's largest automobile maker, said lower tax payments and improved margins helped its profit grow 19 per cent in the latest quarter despite a drop in the number of vehicles ...
Volvo AB posted a 24 per cent increase in fourth-quarter profit Friday as sales growth stalled for the world's second-biggest truckmaker, missing analysts' forecasts. But Volvo shares rose as the ...
Honda says its profit shot up 63 per cent in its fiscal second quarter. Net income at Japan's number-two car maker climbed to US$1.83 billion. That's up from US$1.11 billion in the same period ...
NEW DELHI (AP) _ Tata Motors Ltd., India's largest automobile manufacturer, said Friday its profit in the most recent quarter rose 26 per cent from a year ago, driven by strong sales ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!

Kia Motors says profit rises 36 per cent on cost cutting
> © 2006-2017 except where otherwise noted