SEOUL – Kia Corp. reported a 5 percent increase in its second-quarter net profit, influenced by a strategic shift towards higher-priced models and a weakening of the won.
According to Yonhap News Agency, the net profit for the April-June period reached 2.95 trillion won (US$2.1 billion), with operating profit setting a new quarterly record at 3.64 trillion won, an increase of 7.1 percent from the previous year. Sales also rose by 5 percent to 26.56 trillion won. Despite these increases, the earnings did not meet analysts' expectations of a 2.99 trillion won net profit, per Yonhap Infomax. Kia cited enhanced profitability due to an improved product mix and lower raw material costs, coupled with favorable exchange rates. However, domestic sales saw a decrease, while overseas sales, especially in North America, showed robust growth. The company also highlighted a significant increase in eco-friendly vehicle sales, which rose by 8.3 percent year-on-year.