Kia Motors Second-Quarter Net Profit down 13.3 Percent
South Korea's Kia Motors said Friday its second-quarter profit fell 13.3 percent year on year, as a pick-up in sales was offset by a stronger won that hurt exports.
Net profit for April-June at the country's second largest auto maker came to 1.02 trillion won ($988 million), with unit sales up 4.3 percent year on year.
Operating profit plunged 31.7 percent on-year to 769.7 billion won in the three-month period.
"As the won remained high, profitability fell seriously as exports account for 75 percent of our business," the company said in a press statement.
The South Korean currency rose more than eight percent against the U.S. dollar in the second quarter, touching a six-year high.
A no-discount policy based on the popularity of its new models abroad and efficient marketing expenditure prevented a further drop in earnings, it said.
The company said it was facing fresh challenges in the second half of 2014, citing stiffer competition from rivals and global financial market uncertainties.
Source: Agence France Presse
| Copyright © 2012 Naharnet.com. All Rights Reserved. | https://www.naharnet.com/stories/en/140466 |