Kia Motors has reported a flat quarterly net profit as rising steel prices and weak local sales offset a jump in exports.
Go deeper with GlobalData
Global steel prices, up 14% in the first half, have gnawed at Kia’s bottom line along with heavy marketing costs to give incentives to auto buyers in a sluggish domestic market, Reuters said.
Analysts, however, reportedly banked on better local sales for the second half as Kia should benefit from next month’s launch of a new model of compact sport utility vehicle.
Reuters said Kia earned a net profit of 186.4 billion won ($US159.6 million) for the three months ended June 30, unchanged from a year ago, as sales rose 14% to 3.9 trillion won.
Kia’s quarterly profit came one day after Hyundai Motor reported an 11 percent drop in second-quarter profit, pinched by higher steel prices and slow domestic sales, the report noted.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLike its domestic rivals, Kia has suffered a protracted slump in sales at home while enjoying solid demand in Europe and elsewhere, Reuters added.
