This file photo provided by Kia Corp. shows the EV9 GT-line model.
SEOUL, April 26 (Korea Bizwire) — Kia Corp., South Korea’s second-biggest carmaker by sales, said Wednesday its first-quarter net profit more than doubled from a year earlier on increased production and an improved product mix.
Net profit for the three months ended in March jumped to 2.119 trillion won (US$1.58 billion) from 1.032 trillion won during the same period of last year, Kia said in a statement.
The net result was buoyed by increased vehicle production amid improving chip supplies, higher average selling prices, robust sales of high-margin SUVs, and the won’s weakness against the U.S. dollar.
In particular, demand for recreational vehicles in the United States and the adoption of three shifts at Kia’s India plant helped boost sales in the March quarter, the statement said.
The dollar rose to an average of 1,275.58 won in the first quarter from 1,204.95 won a year earlier, according to data from the Bank of Korea.
Looking ahead, Kia expected volatility in raw material prices, high interest rates, and high consumer prices will remain worries for the automobile industry this year.
While focusing on boosting sales of high-margin SUV models such as the Telluride SUV, Kia plans to launch the all-electric EV9 flagship SUV in the domestic market in the first half and place it in Europe and the United States in the second half.
Operating profit rose 79 percent to 2.873 trillion won in the first quarter from 1.606 trillion won a year ago. Sales were up 29 percent to 23.690 trillion won from 18.357 trillion won.
(Yonhap)
