Kia surpasses analyst estimates with $1.1 billion 1st-quarter net income

Article by Christian Andrei, on April 28, 2012

Kia reported a net income of 1.2 trillion won or $1.1 billion for the first three months ended March, a 26% increase from the 953.2 billion won it achieved on the same period in 2011. The South Korean automaker's first-quarter profit, as reported in its regulatory filing, surpassed the 948.4 billion won average forecast of 26 analysts who Bloomberg had surveyed.

The automaker has benefited from the demand of its Sportage SUV and Rio compact cars, which lifted sales in the United States, China and Europe. In the United States, car sales for the first quarter increased by a revised 32%. This is more than three times the rate of the automaker's yearly goal. The automaker also achieved a rise of 25% in Europe and 15% in China as its vehicle models enjoyed popularity in export markets.

In January, Kia stated that it was aiming for growth of 23% in Europe and 10% in the United States. Operating profit, or sales less administrative expenses and the cost of goods sold, rose 33% to 1.12 trillion won, Kia disclosed. Sales income increased 11% to 11.8 trillion won, outperforming the 26 analysts' average estimate of 11.5 trillion won. 

Analyst Shin Chung Kwan at KB Investment & Securities Co. commented that the automaker's trend of worldwide sales "will continue." He also stated that the automaker's sales in the domestic market will also grow as it introduces the new K series models this year.

Kia had struggled in the domestic market last quarter, the analyst noted. At present, the vehicle manufacturer has the capacity to produce 2.8 million automobiles or more in 2012, according to Kia's financial management boss Joo Woo Jeong. Joo noted that this is more than the 2.7 million sales originally targeted, adding that they anticipate the sales to "exceed the target."

Topics: kia, income

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Each time that Mini launches a new generation of the Countryman crossover, a John Cooper Works performance version is always expected to follow. When Mini unveiled the next-gen 2017 Mini...
by - January 18, 2017
Ford Mustang customers won’t be able to specify the V6 powerplant for the latest iteration of the carmaker’s pony car. This comes as the new 2018 Ford Mustang is saying...
by - January 18, 2017
The man sitting at the top of the performance division of Mercedes-Benz – Tobias Moers – cryptically indicated that the Mercedes-AMG GT4 could be really coming. Moers, chief executive of...
by - January 18, 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