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South Korea’s second largest automaker Kia Motors Corp. reported its operating profit for the second quarter fell 10.2 percent from the previous quarter due to reduced sales, while gaining more than 70 percent for the full first half when compared to a year-ago period thanks to favorable foreign exchange conditions.

Kia Motors in its regulatory filing on Tuesday said its consolidated operating profit for the quarter ended June reached 533.6 billion won ($452.8 million), down 10.2 percent from three months ago, but gaining 51.3 percent from a year earlier owing to a cheaper won.

Net profit fell 22.1 percent on quarter but gained 52.3 percent on year to 505.4 billion won in the April-June period. Sales added 16.6 percent on quarter and 3.2 percent on year to 14.5 trillion won.

Shares of Kia Motors on Tuesday lost 0.58 percent to close at 42,600 won in Seoul trading.


Sales improved compared to a year-ago period thanks to addition in SUV lineup such as the Telluride and the Soul. The depreciation in the Korean won has also helped the company offset a decline in sales at home and abroad.

Efficient inventory controls and a decrease in incentives also helped improve the operating margin by 1.2 percentage points to 3.7 percent, the automaker said.

Kia Motors sold total 702,733 units from April to June, down 5.0 percent from the previous year. Domestic sales shrank 10.9 percent to 127,405 units, and outbound shipments slid 3.6 percent to 575,328 units during the period.

In the first six months, Kia Motors’s operating profit soared 71.3 percent on year to 1.13 trillion won on sales of 26.95 trillion won, up 1.2 percent from a year ago. Net profit jumped 51.1 percent to 1.15 trillion won during the period.

Kia Motors Corp.`s Telluride

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Kia Motor sold total 1,352,629 vehicles in the first half, down 2.4 percent from the same period a year earlier. Domestic sales skidded 9.3 percent to 242,870 units, and overseas sales 0.8 percent to 1,109,759 units.

Shipments to North America added 2.3 percent to 383,192 units, and Europe 1.0 percent to 270,391 units, while sales in China were off 16.4 percent to 144,472 units. Other markets such as Russia, Latin America, Africa, the Middles East and Asia saw a 2.7 percent rise in sales after delivering 311,704 units during the period.

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