Kia reports 40% jump in Q2 profit riding on high-end SUVs

Seoul, July 22

Automaker Kia said on Friday that its second-quarter net profit jumped 40 per cent from a year earlier on an improved product mix and a weak won.

Net profit for the three months ended in June rose to 1.88 trillion won ($1.43 billion) from 1.34 trillion won in the same period of last year, the company said in a statement.

The second-quarter bottom line was buoyed by increased sales of high-end SUV models, decreased incentives and the won's weakness against the dollar, reports Yonhap news agency.

Such factors helped offset the carmaker's production losses derived from a prolonged chip shortage and disruptions of parts supplies, Kia said.

Operating profit also soared 50 percent to 2.23 trillion won in the second quarter from 1.48 trillion won a year ago. Sales were up 19 percent to 21.87 trillion won from 18.34 trillion won.

From January to June, net profit climbed 23 per cent to 2.91 trillion won from 2.38 trillion won a year earlier.

Operating profit jumped 50 per cent to 3.84 trillion won from 2.56 trillion won during the same period. Sales gained 15 per cent to 40.23 trillion won from 34.92 trillion won.

Kia's parent company Hyundai Motor Group earlier said that its second-quarter net profit jumped 56 per cent from a year earlier on improved product mix and a weak won.

Net profit for the three months ended in June rose to 3.08 trillion won (US$2.34 billion) from 1.98 trillion won during the same period of last year.

In the six-month period, Hyundai sold a total of 1.88 million vehicles, achieving 43 per cent of its sales target of 4.34 million units for the year.