Kia posts record Q3 net profit on new cars [Archive] - Ford Inside News Community

: Kia posts record Q3 net profit on new cars



davidlane
10-28-2010, 08:29 PM
Kia Motors (000270.KS), South Korea's No.2 carmaker, is expected to report strong earnings for the current quarter, after its net profit jumped 66 percent to hit a record-high in the third quarter thank to strong sales of new models.

While demand remains weak in the U.S. and Europe, South Korean carmakers look to continue to outperform their global rivals thanks to their competitiveness in compact cars and high exposure to emerging markets.

Kia and its parent firm Hyundai Motor (005380.KS) are also benefitting from improved quality and brand image while their Japanese competitors such as Toyota (7203.T) are still reeling from a massive series of recalls and a surging yen JPY=. [ID:nTOE69R06I]

Hyundai, the world's fifth-biggest carmaker along with Kia, on Thursday posted a higher-than-expected 38 percent rise in third-quarter net profit as it gained global market share helped by strong sales of new models. [ID:nTOE69P037]

Kia made a 667 billion won ($593.9 million) net profit for the quarter ended September, beating a consensus forecast of 431.3 billion won from Thomson Reuters I/B/E/S.

This compared with 402 billion won a year ago and 558 billion won in the second quarter of this year.

Quarterly operating profit rose 34 percent to 421 billion won from a year earlier, while sales climbed 26 percent to 5.7 trillion won.

Kia's earnings momentum will grow in the current quarter as new cars and low inventories help to boost its utilisation rates, analysts say.

Kia is also expected to benefit from solid growth in China which subsidises fuel-efficient cars.

Kia shares have nearly doubled this year, easily outpacing the 14 percent gain in the KOSPI .KS11.

http://www.reuters.com/article/idUSTOE69R0AY20101029

ausrutherford
10-28-2010, 08:31 PM
On wonders why Kia reports seperately from Hyundai since Hyundai owns them...