Kia Motors Corporation today announced business results for the first half of 2019, reporting year-over-year growths of 1.2 percent and 71.3 percent in sales revenue and operating profit, respectively.
Sales revenue totalled KRW 26.95 trillion, increasing from KRW 26.62 trillion in the same period of 2018, as a favourable currency impact and momentum generated by new models in the U.S. offset weaker demand in major markets.
Operating profit in the second half totalled KRW 1.13 trillion, climbing 71.3 percent from a year earlier, while the company posted a net profit including minority interest of KRW 1.15 trillion, 51.1 percent higher than the same period in 2018. Increased sales of new models with higher margins as well as the one-off item of writing back provision expenses incurred a year earlier were key drivers of the improved profitability.
Kia Motors’ global sales in the first and second quarters this year totalled for 1,352,629 units, a 2.4. percent decrease compared with the same period last year, mainly due to sluggish demand in key markets and ongoing trade disputes between major economies.
Nonetheless, the company saw healthy growth in the U.S. market with a 2.3 percent gain, posting 383,192 units sold, mainly driven by the successful launch of brand-new flagship SUV Telluride and all-new CUV Soul.
While the global economy is likely to remain slow in the latter half of the year due to global trade tensions and weak demand 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 internally 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.
Notes:
A. The above 2019 results are tentative consolidated business results under “Korean International Financial Reporting Standards (K-IFRS)”
B. The above results are preliminary and unaudited. Figures are subject to change after official audit.
C. The above sales volumes are based on wholesales.
D. For further information, please refer to the company website(http://www.kia.com/worldwide/main.do)
A. The above 2019 results are tentative consolidated business results under “Korean International Financial Reporting Standards (K-IFRS)”
B. The above results are preliminary and unaudited. Figures are subject to change after official audit.
C. The above sales volumes are based on wholesales.
D. For further information, please refer to the company website(http://www.kia.com/worldwide/main.do)
Presentation material is available for download on the Company IR website – IR Calendar (http://pr.kia.com/en/company/ir/ir-library/business-results.do)
SOURCE: Kia
