Kia's Q2 Profits Up To $1.06 Billion On Strong Chinese Performance, Sales Lukewarm Elsewhere

TTAC Staff
by TTAC Staff
kia s q2 profits up to 1 06 billion on strong chinese performance sales lukewarm

Spurred by increased sales in China, Kia’s second quarter profits were up 7.7% from last year, to 1.18 trillion won ($1.06 billion), exceeding analysts expectations slightly. Revenue was up 4.4% to 13.1 trillion won ($1.168 billion).

Sales in China, affected by the territorial island dispute between China and Japan, were up 22% driven by demand for the K3 sedan. Sales in Europe bucked the general trend in the moribund market and were also up slightly, 1.5%, lifted by sales of the Sportage SUV and the Cee’d hatchback. The strengthened South Korean currency, which rose 2.4% against the yen in the quarter, hurt sales in the United States, Kia’s biggest market. Sales in the States fell just barely, 0.2%, compared to an industry average of +8.5%, and that was even after Kia increased spending on incentives by 19% in the quarter.

Sales for the domestic Korean market were down 4% from the same period last year, and were down 3.7% in Latin America at a time when industry sales were up 7.9%. Excluding South Korea and China, sales in Kia’s Asia-Pacific region were down 9.1%.

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  • The Cadenza and Optima are fantastic looking, well-equipped cars. I don't know how reliable their turbos, engines or transmissions are, but I'd easily buy a Hyundai/Kia over a Toyota/Honda/Nissan. I look at the features in the Azera/Cadenza such as the waterfall cushions and wonder, why is it the $55,000 cars don't have stuff like that?

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    • Bd2 Bd2 on Jul 27, 2013

      @Kyree With the facelift, Kia designers have ruined the back end of the Optima by making the taillights look like an amorphous blob (the pre-refresh taillights, otoh, were the best in the segment). But Kia went above and beyond with the interior of the refreshed SXL trim for the Optima which looks amazing. Didn't think the interior of the prefresh SXL was worth the premium but the new one seems worth it.

  • Nitro Cory Nitro Cory on Jul 26, 2013

    I think you made an error converting revenue to $.

  • Conslaw Conslaw on Jul 26, 2013

    So GM made $1.2 billion profit in the quarter and (little) Kia made $1.06 billion? What is the relative CEO pay?

    • Bd2 Bd2 on Jul 26, 2013

      Much lower than what Mulally and Ford, Jr. get at Ford (those 2 each get paid more than VW's CEO, Winterkorn).

  • JLGOLDEN JLGOLDEN on Jul 28, 2013

    Well, Kia got two sales from me this year: A new Cadenza in May, and 70 days later, after Cadenza's unusual and irritating problems made me CRAZY...I traded for a loaded 2014 Sorento SX AWD.

    • See 1 previous
    • JLGOLDEN JLGOLDEN on Jul 28, 2013

      @SayMyName Fuel pump failure at 1800 miles, then annoying structural pops, creaks, and rattles arrived around 2200 miles. A regional Kia service director more or less told me that the car structure apparently loosens up and results in headliner and pillar noise when the body flexes. No fix was attempted or offered.

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