Kia Motors Corporation today announced business results for the third quarter of 2019, reporting year-over-year growths of 7.2 percent and 148.5 percent in sales revenue and operating profit, respectively.
Sales revenue totalled KRW 15.09 trillion, increasing from 7.2 percent from the same period of 2018, as a favourable currency impact and momentum generated by new models helped offset weaker demand in the Chinese market.
Operating profit in the third quarter totalled KRW 291.5 billion, climbing 148.5 percent from a year earlier, while the company posted a net profit including minority interest of KRW 325.8 billion, 2.2 percent higher than the same period in 2018. Key drivers of the improved profitability include increased sales models with higher margins and optimized inventory levels. The growth comes despite a one-off expense of approximately KRW 300 billion relating to the lifetime warranty for Theta 2 GDI engines.
Kia Motors’ global sales in the third quarter this year totalled for 691,151 units, slightly increasing from the same period last year, despite sluggish demand in key markets and ongoing trade disputes between major economies.
Kia has cumulatively generated KRW 42.04 trillion in revenue, KRW 1.42 trillion in operating profit and KRW 1.48 trillion in net profit this year. The company has sold a total of 2,043,780 vehicle units during the first nine months of 2019.
While the global economy is likely to remain slow for the remainder of the year due to global trade tensions, weak investor sentiments and the slump in local economies in emerging markets, Kia Motors plans to boost sales of new SUV and higher-volume models while establishing stronger presence in emerging markets including India.
Kia will also strengthen its competitiveness through active productivity improvements. As an example, production target of the Telluride has been adjusted upwards from 60,000 units to 80,000 units.
In China, the company will focus its efforts on restoring its mid- to long-term competitiveness through fundamental improvements such as enhancing its brand image, improving the efficiency of its product line-up operation, re-establishing pricing strategies and optimizing its sales network.
In India, Kia plans to gain a deeper foothold, by building on its successful foray into market. The company sold more than 50,000 vehicle units in India with with a single model, Seltos, despite weakening market demand.
SOURCE: Kia Motors