Kia Motors swings to black in Q1

(ATTN: UPDATES para 4, 7;ADDS more details from para 12)
SEOUL, April 24 (Yonhap) -- Kia Motors Corp., South Korea's second-largest
automaker, said Friday it returned to profit in the first quarter on the back of
a weaker won and a rise in new car sales.

Net income came to 97.4 billion won (US$72.6 million) in the three months to
March, a turnaround from a net loss of 24.8 billion won a year ago, Kia Motors
said in a regulatory filing.
Sales, however, fell 5.8 percent on-year to 3.5 trillion won, and operating
profit dropped 13 percent to 88.9 billion won, it said.
Shares of Kia Motors fell 3.27 percent to 10,350 won as of 1:52 p.m. on the Seoul
bourse.
"The won's depreciation and robust new car sales helped Kia Motors turn a profit
in the first quarter, "said Lee Jae-rok, chief financial officer of the company.
The won fell over 30 percent versus the greenback and almost 40 percent against
the yen in the January-March period from the previous year, helping local
carmakers' price competitiveness in the U.S. market.
Kia, affiliated with top carmaker Hyundai Motor Co., increased its U.S. market
share by over 3 percent for the first time, with its sales rising to 69,000
units, the company said.
Kia sold 219,839 units both at home and abroad in the January-March period, down
12.6 percent from a year ago as exports fell 20.6 percent to 141,000 due to the
global economic recession, the company said.
Domestic sales, however, increased 6.4 percent to 79,000 units, helped by a rise
in new car sales, including the small-sized hatchback "Soul" and small cars such
as the "Morning."
Kia's overall sales among overseas plants fell 31.2 percent to 61,222 units in
the first quarter from a year earlier due to falling demand for vehicles, with
sales at its European plants falling 47 percent to 28,000 units.
Kia said it plans to boost sales by selling more new cars and cutting costs in
the second quarter and by launching a new sports coupe in June.
As part of efforts to boost sales in the U.S., Kia will introduce diverse
programs to lure cash-strapped American customers to its showrooms, Lee said. Kia
increased marketing expenses by 185 billion won in the first quarter from the
previous year, he said.
The automaker is aiming to step up its sales to 200,000 units this year in
African and Middle Eastern markets.
It also plans to release its new compact sedan Forte in June and Soul in
September in China.
In addition, the company will soon take out a loan of about 300 billion won from
the local banking sector to pay back debts, Lee said.
ksnam@yna.co.kr
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