Kia boosts 4th quarter profit of 2013 by 29% to $882 million

Article by Christian A., on January 26, 2014

Kia Motors Corp. posted a 29-percent jump in profit in the fourth quarter of 2013 to KRW949 billion ($882 million), thanks to stronger sales of pricier models in South Korea. These results are better than the KRW909-billion average of 25 analysts' estimates polled by Bloomberg.

Stronger sales of Sportage and Soul vehicles at home was the bright spot for Kia in the fourth quarter of 2013, at a time when stronger won affected revenues in the United States, and the carmaker agreed to settle lawsuits for overstating fuel-economy ratings. Kia and affiliate Hyundai are expecting their weakest combined sales growth in eight years amid the stiff rivalry and a stronger won that hampers exports.

"Kia is relatively more vulnerable to the unfavorable exchange rates than Hyundai is, as it's more dependent on its plants in Korea," Lee Hyun Soo, an analyst at Kiwoom Securities Co., told Bloomberg. He expects Kia to perform better this year, hoping to ride on new and profitable models like the Sorento SUV that will be available in the second half.

The South Korean won has gained 3.4 percent against the US dollar and 6.7 percent versus the Japanese yen in the past six months. Kia targets to hike its deliveries in 2014 by 5 percent to 2.96 million vehicles, according to comments by Chairman Chung Mong Koo to employees during a New Year address. The chairman said that Hyundai and Kia's combined deliveries will surge 4 percent to 7.86 million vehicles in 2014 -- the slowest growth since 2006.

Topics: kia, profit

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries