Kia Motors Corp. posted a 7.7-percent increase in net income, excluding minority interests, in the second quarter of 2013 to KRW1.18 trillion ($1.06 billion), compared with KRW1.1 trillion in the same period in 2012. The South Korean carmaker’s second quarter results surpassed the KRW1.05 trillion average of 18 analysts' estimates compiled by Bloomberg in the past 28 days.
The carmaker posted a 4.5-percent hike in revenues in the second quarter of 2013 to KRW13.1 trillion. The carmaker’s strong performance in the quarter is attributable to its feat in China, where its sales soared 22 percent on higher demand for its K3 sedan.
The carmaker also posted a 1.5-percent increase in deliveries in Europe, helping it resist a current slump in the region, boosted by the popularity of its Sportage sports utility vehicle and the new Cee’d hatchback. In contrast, carmakers in Europe posted a 4.1-percent decline in sales, according to data compiled by Bloomberg.
Kia’s gains also allowed it to offset diving sales in the United States and in South Korea. Lee Hyun Soo, an analyst at Kiwoom Securities Co., told Bloomberg before the earnings announcement that sales growth in China sales helped Kia in the second quarter.
He said that “things look good” at Kia with new model releases planned and a new site in China set next year. Kia posted an 8.5-percent drop in operating profit in the second quarter of 2013 to KRW1.13 trillion, compared with the KRW1.01 trillion average of 18 analysts' estimates compiled by Bloomberg. The carmaker’s China site posted a 24-percent surge in sales in the second quarter of 2013, according to data on the carmaker's website. [source: Kia]