April 26, 2024

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[THE INVESTOR] Kia Motors, the nation’s No.2 carmaker, on Jan. 26 reported its fourth-quarter operating profit of 532.2 billion won (US$459.88 million), up 3.5 percent from a year ago, on the back of new car launches and popularity of sport utility vehicles. 

Revenue gained 1 percent to 12.91 trillion won during the October-December period. Kia’s net profit, however, declined 25.7 percent in the fourth quarter to 320 billion won. 

The company said it sold 877,189 units in the cited period, up 1.6 percent. Despite an 8.8 percent decline in exports from Korea, its overseas plants, including the newly-opened Mexico plant, ramped up production by 14.3 percent on-year, it said. 

Kia Motors’ Sportage SUV was the carmaker`s best-selling models in 2016.

As for all of 2016, operating profit increased 4.6 percent to 2.46 trillion won. Annual revenue increased by 6.4 percent to reach 52.71 trillion won, the first time the automaker has crossed the 50 trillion won mark. Net income also gained 4.7 percent to 2.75 trillion won.

“Thanks to the popularity of Niro and K7, revenue and operating profit increased,” the automaker said in a statement. “This year as Kia faces slower growth and unstable business environment in its major markets, we will do our best to improve profitability by focusing on new car launches, such as Morning, Pride and Stinger, and increase sales of sport utility vehicles.”

In total, Kia sold 3.01 million units in Korea and overseas last year, up 1 percent from the previous year.

By Ahn Sung-mi (sahn@heraldcorp.com)