ID :
74994
Wed, 08/12/2009 - 20:06
Auther :
Shortlink :
https://www.oananews.org//node/74994
The shortlink copeid
Kia Motors Q2 net quadruples on increased sales
SEOUL, Aug. 12 (Yonhap) -- Kia Motors Corp., South Korea's No. 2 automaker, said Wednesday that its second-quarter earnings nearly quadrupled as government tax incentives and rising overseas demand for small cars boosted sales.
Net profit reached 347 billion won (US$278 million) in the April-June period,
compared with a profit of 85.9 billion won year earlier, the company said in a
regulatory filing.
Sales increased 11.5 percent to 4.68 trillion won over the cited period, and
operating income surged 182 percent to 330 billion won, it said.
Shares of Kia Motors closed at 16,150 won on the Seoul bourse, down 2.42 percent.
The automaker delivered 428,615 vehicles in the second quarter. Kia Motors said
its second-quarter domestic sales increased 42 percent on-year, but overseas
sales declined 7.9 percent over the cited period.
Kia Motors has released a series of new models, including the fuel-efficient
Forte and Soul small cars, and has benefited from a weaker local currency.
"Despite a severe downturn in the global market, Kia Motors managed to generate
profit on the back of tax incentives and a weaker local currency," the company
said in a statement.
Kia Motors said its domestic market share rose to 31 percent in the second
quarter from 25 percent at the end of last year.
The automaker also expanded its market share in the U.S. and Europe as
industrywide sales fell. Its global market share rose to 2.5 percent in the
second quarter from 2.1 percent a year earlier, according to the company.
Kia Motors' first-half net profit reached 383 billion won, and its operating
income amounted to 200 billion won. Its sales in the first six months of the year
reached 8.17 trillion won.
The automaker sold a total of 509,784 vehicles in the January-June period, down
2.7 percent from a year earlier.
Domestic sales in the first half jumped 25 percent from a year earlier to 191,616
units, while its overseas sales plunged 14 percent to 318,000 units.
However, the company's sales in other countries increased 4.4 percent on-year to
748,000 units when vehicles produced at overseas plants are included, it said.
Kia Motors, meanwhile, said the ongoing strike scheduled to continue through the
end of the month could cost up to 1 trillion won in lost production.
Unionized workers launched a strike on Tuesday to demand higher wages and better
working conditions.
The union said Kia workers may lay down their tools for four hours every day
through Aug. 31 if their demands are not met.
Kia and its union have failed to narrow their differences after a series of wage
negotiations.
The union is demanding that Kia raise its monthly basic salary by 5.5 percent and
offer a 200 percent bonus. The automaker is pushing for a wage freeze, however,
citing unfavorable market conditions.
Net profit reached 347 billion won (US$278 million) in the April-June period,
compared with a profit of 85.9 billion won year earlier, the company said in a
regulatory filing.
Sales increased 11.5 percent to 4.68 trillion won over the cited period, and
operating income surged 182 percent to 330 billion won, it said.
Shares of Kia Motors closed at 16,150 won on the Seoul bourse, down 2.42 percent.
The automaker delivered 428,615 vehicles in the second quarter. Kia Motors said
its second-quarter domestic sales increased 42 percent on-year, but overseas
sales declined 7.9 percent over the cited period.
Kia Motors has released a series of new models, including the fuel-efficient
Forte and Soul small cars, and has benefited from a weaker local currency.
"Despite a severe downturn in the global market, Kia Motors managed to generate
profit on the back of tax incentives and a weaker local currency," the company
said in a statement.
Kia Motors said its domestic market share rose to 31 percent in the second
quarter from 25 percent at the end of last year.
The automaker also expanded its market share in the U.S. and Europe as
industrywide sales fell. Its global market share rose to 2.5 percent in the
second quarter from 2.1 percent a year earlier, according to the company.
Kia Motors' first-half net profit reached 383 billion won, and its operating
income amounted to 200 billion won. Its sales in the first six months of the year
reached 8.17 trillion won.
The automaker sold a total of 509,784 vehicles in the January-June period, down
2.7 percent from a year earlier.
Domestic sales in the first half jumped 25 percent from a year earlier to 191,616
units, while its overseas sales plunged 14 percent to 318,000 units.
However, the company's sales in other countries increased 4.4 percent on-year to
748,000 units when vehicles produced at overseas plants are included, it said.
Kia Motors, meanwhile, said the ongoing strike scheduled to continue through the
end of the month could cost up to 1 trillion won in lost production.
Unionized workers launched a strike on Tuesday to demand higher wages and better
working conditions.
The union said Kia workers may lay down their tools for four hours every day
through Aug. 31 if their demands are not met.
Kia and its union have failed to narrow their differences after a series of wage
negotiations.
The union is demanding that Kia raise its monthly basic salary by 5.5 percent and
offer a 200 percent bonus. The automaker is pushing for a wage freeze, however,
citing unfavorable market conditions.
