Kia Corp., South Korea's second-biggest carmaker by sales, said Thursday its second-quarter net profit jumped 50 percent from a year earlier, helped by a weak won and an improved product mix.
For the three months ended in June, net profit soared to 2.82 trillion won (US$2.2 billion) from 1.88 trillion won during the same period of last year, the company said in a statement.
"A combination of a weak won, increased production amid eased chip shortages, increased sales of high-end models, and reduced incentives (for customers who purchase Hyundai vehicles) gave a boost to the quarterly bottom line," the statement said.
The U.S. dollar rose to an average of 1,315 won in the second quarter from 1,260 won a year earlier. A weak won drives up the value of an exporter's dollar-denominated earnings when converted into the local currency.
Robust demand for the all-electric EV9 SUV, launched in the domestic market in June, and other high-end SUVs also helped the quarterly results, Kia said.
Operating profit also jumped 52 percent to 3.4 trillion won in the second quarter from 2.23 trillion won a year earlier. Sales rose 20 percent to 26.24 trillion won from 21.88 trillion won during the cited period.
Looking ahead, Kia expected high interest rates, high consumer prices, and geopolitical risks will remain worries for the company in competition with its rivals in global markets.
From January to June, net income surged 69 percent to 4.94 trillion won from 2.91 trillion won a year earlier.
Operating profit soared 63 percent to 6.28 trillion won in the first half from 3.84 trillion won a year ago. Sales were up 24 percent to 49.94 trillion won from 40.23 trillion won.
Source: Yonhap News Agency