DAILY - UPDATED
Kia quadruples its Q2 profits
Kia Q2 net operating profit highest since Q4 2003. Outlook bright on increasing small car demand.
Kia Motors announced yesterday that it has more than quadrupled quarterly profit to the highest since 2003 as higher domestic and Chinese sales allowed it to avoid the worst of a global auto market meltdown.
Kia’s net income jumped to $278 million in the three months ended June from $70 million a year earlier thanks to rising demand for popular compact Kia cars and weakening won.
In the second quarter of the year, Kia sold 428,615 new vehicles around the world. By region, Kia posted the largest sales gains in China and Korean markets with sales increasing 52 percent and 13 percent, respectively.
Kia‘s first-half global retail sales rose 4.4 percent from a year earlier to 748,000 vehicles, while its global market share also rose from 2.1 percent a year earlier to 2.5 percent in 2009.
Kia Motors also released its first half earnings for 2009. Despite a 5.7 percent drop in export revenue, total revenue increased by 3.3 percent to $6.05 billion in 2009 versus $7.96 billion achieved in the first half of 2008. This increase was powered by a strong domestic revenue gain of 23.3 percent to $2.2 billion.
Corporate profitability rose overall in the first half. Operating profit rose 91.5 percent from $220 million in 2008 to $310 million, aided by ongoing efforts by the company to improve its cost structure, a favorable foreign exchange rate, and a revitalization of the domestic auto market. Net profits increased by 627.2% rising from $61.4 million in 2008 to $328 million USD. [Source: Kia-world]