Kia Motors Q3 profit soars to record high

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SEOUL, Oct. 23 (Yonhap) -- Kia Motors Corp. said Friday its net profit jumped to
an all-time high in the third quarter of this year, fueled by strong demand for
new models and a weak local currency.
Net profit for the three months through September at Kia, South Korea's
second-largest carmaker, soared to 401.9 billion won (US$337.7 million) from a
loss of 22 billion won a year earlier, the company said in a regulatory filing.
The net profit figure was the biggest for a single quarter since Kia started
releasing quarterly earnings in 2000, Kia officials said.
Third-quarter operating profit also jumped nearly six times to 313.4 billion won.
Sales climbed 31.6 percent from a year ago to 4.5 trillion won, according to the
filing.
The maker of the popular Forte compact car also benefited from incentive programs
for new-car buyers by governments worldwide.
The short-term outlook for the affiliate of Hyundai Motor Co., however, is in
doubt as the Korean currency continues to strengthen against the U.S. dollar and
other major currencies and as incentive programs worldwide are coming to an end,
analysts say.
Despite the outlook, Kim Deuk-joo, Kia's chief financial officer, told investors
and reporters that the company aims to sell 1.6 million vehicles for all of this
year, compared with 1.48 million units sold last year.
Kim also painted a bright future for 2010, citing strong appetite for small cars
around the world.
"Next year, we expect global auto sales to post double-digit growth," Kim said.
In the first nine months of this year, Kia's total auto sales rose 11.7 percent
from a year ago to 1.18 million units.
After the earnings release, shares of Kia Motors were trading at 17,880 won, up
3.79 percent, at one point in late morning trading in Seoul.
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