Kia Motors Corp. announced on Oct. 26 that it earned 117.3 billion won (US$103 million) in operating profit in the third quarter of year, making a turnaround from a deficit a year ago.
However, its operating profit fell short of the market consensus of 200 billion won, fueling concerns about the future of the Hyundai Motor Group. On Oct. 25, Hyundai Motor, the key affiliate of the automotive group, delivered an earnings shock by reporting that its third quarter operating profit plunged 76 percent from a year ago.
Kia held a conference call at its headquarters in Yangjae-dong, Seoul and announced its management performance in the third quarter.
Sales for the third quarter fell 0.2 percent from last year to 14.73 trillion won, while operating profit returned to surplus from a 427 billion won deficit in the third quarter of last year.
Kia`s deficit in the third quarter of last year was due to special factors such as reflecting ordinary wage costs. The shift in surplus this year is due to the low-base effect.
In addition, both ordinary income and net profit were converted to surplus, resulting in 316.3 billion won and 297.8 billion won, respectively.