DAILY - UPDATED
Kia posts 40 percent jump in profits
Kia Motors Corporation announced its profit rose 40 percent in the second quarter of the year, beating automobile analysts expectations, on higher sales of the Morning minicar – known as Picanto in Europe.
The South Korean carmaker earned $85.3 million in the second quarter of the year, while its sales soared 1.4 percent to 4.19 trillion won.
Due to the increasing sales, Kia is expecting to post a full-year operating margin of more than 3 percent, with the weaker won offsetting rising materials costs.
The operating margin during the first half of the year stood at 2,8%.
In South Korea, where Kia earns a third of its revenue, the automaker boosted vehicle sales to 79,619 units.
Kia’s sales in the first 6 months increased 20 percent compared to a year ago and was led by strong demand for the Morning mini car and Sportage SUV.
Kia introduced the refreshed Picanto model in January and since then it has sold at over 8000 units each month.
Compared with its sales in the first half of 2007, Kia Morning sales soared as much as 300%!!
With more small car models just around the corner – to be released in the second half, Kia will likely win more customers at home and abroad.
New models, such as the Forte compact sedan and Soul crossover vehicle, will certainly raise the carmaker’s domestic sales, as well as profits in the second half. [Source: TheEconomicTimes ]
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