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

Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
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