Kia Reports Modest Increase in Q3 Profits Amidst Industry Challenges

SEOUL: Kia Corp., South Korea's second-largest automaker, announced a 2.1 percent increase in its third-quarter net profit, driven by the release of new and hybrid models despite challenges in the industrial demand sector. According to Yonhap News Agency, Kia's net profit for the quarter ending in September rose to 2.26 trillion won ($1.6 billion), up from 2.22 trillion won the previous year. This growth was supported by the strong performance of new models such as the all-electric EV3 SUV, the upgraded K8 sedan, and gasoline hybrid vehicles, which helped balance the slowing sales of electric vehicles. The company noted a 630 billion won provision for engine warranty extensions in the U.S. market, which impacted the potential for higher net results. Despite this, Kia remains concerned about the ongoing slowdown in electric vehicle sales, geopolitical risks, and increased costs due to stiffer competition, which are expected to persist throughout the remainder of the year. To bolster growth, Kia plans to exp and sales of gasoline hybrid versions of its Sportage and Sorento SUVs and the Carnival minivan in the fourth quarter. The company's operating profit saw a modest rise of 0.6 percent to 2.88 trillion won, while sales increased by 3.8 percent, reaching 26.52 trillion won. Kia has adjusted its earnings guidance for the year, now aiming for an operating profit between 12.8 trillion won and 13.2 trillion won on sales ranging from 105 trillion won to 110 trillion won. These figures represent an increase from the previous projections of 12 trillion won and 101.1 trillion won. In an effort to enhance shareholder value, Kia also plans to cancel the remaining half of 500 billion won worth of treasury stocks repurchased earlier this year, following the cancellation of the first half in May.