Sol. Automaker Kia on Friday said its second quarter net profit jumped 40 per cent compared to a year ago due to better product mix and weaker margins.
Net profit rose to 1.88 trillion won ($1.43 billion) for the three months ended June, up from 1.34 trillion won in the same period last year, the company said in a statement.
The low in the second quarter was driven by increased sales of high-end SUV models, lack of incentives and the Won’s weakness against the dollar, Yonhap news agency reported.
Kia said such factors helped the carmaker overcome production losses resulting from prolonged chip shortages and disruptions in parts supply.
Operating profit also rose 50 percent to 2.23 trillion won in the second quarter, from 1.48 trillion won a year ago. Sales grew 19 percent to Won 21.87 trillion, up from Won 18.34 trillion.
From January to June, net profit rose 23 percent to 2.91 trillion won from 2.38 trillion won a year earlier.
Operating profit jumped 50 percent from 2.56 trillion won to 3.84 trillion won during the same period. Sales grew 15 percent to 40.23 trillion won, from 34.92 trillion won.
Kia’s parent company Hyundai Motor Group had earlier said that its second quarter net profit jumped 56 per cent from a year ago due to better product mix and weaker margins.
Net profit for the three months ended June rose to 3.08 trillion won (US$2.34 billion) from 1.98 trillion won during the same period last year.
In the six-month period, Hyundai sold a total of 1.88 million vehicles, achieving 43 percent of its sales target of 4.34 million units for the year.
–IANS
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