April 20, 2024

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Kia Motors on July 23 said its second-quarter earnings jumped 52 percent on a weaker local currency.

Net profit for the April-June period soared to 505 billion won ($430 million) from 332 billion won a year earlier, Kia said in a statement.

“The won’s weakness against the US dollar was the main contributor to the increased net profit. Decreased US incentives and lower global inventories also buoyed the bottom line, offsetting weak sales at home and in China,” a company spokesman said.

The Korean won fell to an average of 1,165.91 against the US dollar in the second quarter, from 1,078.57 in the year-ago period, according to the Bank of Korea. A weak won makes South Korean exports more price competitive overseas and lifts the value of repatriated profit.

Its operating profit also jumped 51 percent to 534 billion won in the second quarter from 353 billion won a year ago. Sales were up 3.2 percent to 14.51 trillion won from 14.06 trillion won.

By Ram Garikipati and newswires (ram@heraldcorp.com)