
Today, we have some really positive and encouraging news coming from Kia’s headquarters in Seoul. It was announced that the company achieved better than expected operating profit in the fourth quarter of 2007!
Kia managed to swing from last year’s fourth quarter loss of 55 billion won, to 97,7 billion won of operating profits. The turnaround came as a result of won currency falling 9,3 percent against Euro, higher car sales and production cost cutting strategy.
Kia also provided upbeat targets as it works to save costs and raise profitability at overseas operations. It is aiming to post a 3 percent operating profit margin in 2008 versus negative margin last year.
Introduction of five new models is expected to boost Kia’s 2008 sales by 22,5 percent. The company plans to introduce revamped Cerato, also known as Spectra, and a small crossover utility vehicle in September. Facelifted version of Lotze (Optima) will also go on sale in Korea later this year.
Sales of Mohave SUV and facelifted Morning minicar, that went on sale in Korea earlier this month, are already posting stronger than expected sales results! New models are likely to lift Kia’s sales and profits in Korea, a market that carries high margins, and also overseas. (more…)