As the sales of new models have been rising in Korea, China and the US, Kia Motors Co. posted a record quarterly profit in the third quarter.
South Korea's second-biggest automaker reported a 66% increase in its net income to 666.6 billion won ($593 million) in the three months ended Sept. 30 from 402 billion won a year ago. This surpassed the 504 billion won average of Bloomberg’s survey that recorded the estimates from 16 analysts.
Kia’s sales also rose 26% to 5.69 trillion won. According to data given before the earnings announcement, Kia revealed that it increased global deliveries by 24% as new models such as the K5 mid-sized sedan and revamped Sorento SUV boosted sales at home and overseas.
Sales in South Korea, which remains to be Kia's biggest market, climbed by 25% even as deliveries at Hyundai Motor Co., which holds 34% of Kia, fell by 12%.
Before the announcement of the earnings, Lee Myung Hoon, a Seoul-based analyst at E*Trade Securities Co., said that sales of Kia's new models rose even with higher prices. Lee said that it’s likely that in the fourth quarter, there would be record quarterly earnings. [via autonews - sub. required]