Kia Motors reports lower-than-expected quarterly earningsJuly 27, 2012 - 13:40 AMT PanARMENIAN.Net - Kia Motors, South Korea's second-largest automaker, reported lower-than-expected quarterly earnings Friday, July 27, as losses on stakes in affiliates offset strong demand for its compact cars, AP reports. Its April-June net profit fell 3 percent from a year earlier to 1.1 trillion won ($964 million). Analysts had forecast earnings of 1.3 trillion won. Profit was dented by falls in the value of its stakes in affiliate companies such as Hyundai Steel, and the year earlier result had been inflated by its sale of shares in Hyundai Wia. But Kia reported higher quarterly operating profit and revenue as strong sales in the United States, Europe and China countered a slowdown in the South Korean auto market. It benefited from South Korea's free trade agreement with the European Union and demand for smaller, fuel efficient cars. Its second-quarter operating profit rose 18 percent over a year earlier to 1.2 trillion won. Revenue grew 8 percent to 12.6 trillion won. Kia shares closed 0.1 percent higher in Seoul. Kia, which is part of the world's fifth-biggest automaker Hyundai Motor Group, sold 1.39 million vehicles in the first six months of this year, up 12 percent from a year earlier. The figure puts Kia on track to meet its annual sales target of 2.71 million vehicles, its chief financial officer Park Han-woo said at a conference call. Kia enjoyed lower tariffs on its vehicles exported to Europe after South Korea's free trade agreement with the European Union went into effect in July 2011. Its vehicle shipments to Europe jumped 25 percent over a year earlier in the January-June period, reflecting demand for Kia's compacts. Sales to the United States grew 18 percent, mainly driven by sales of K5 sedans and the Sorento. In China, sales expanded 16 percent, making up for the 4 percent drop in the South Korean market. Park said the company is targeting sales of 3 million vehicles in 2013. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. Aliyev says no need for mediators in Armenia-Azerbaijan process Azerbaijani President Ilham Aliyev believes that Baku and Yerevan do not mediators in the process of normalizing relations. Aram I supports Karekin II’s “patriotic position” Catholicos of the Great House of Cilicia Aram I has expressed support for the Mother See of Holy Etchmiadzin. |