Kia beats estimates with 61% rise in Q2 net profit
Published on Friday, July 30, 2010
Kia Motors Corp.'s quarterly net profit rose 61 percent, beating estimates as the No. 2 automaker in South Korea enjoyed brisk sales of newly launched models.
Kia, an affiliate of the country's top carmaker, Hyundai Motor Co., announced a 557.8 billion won ($470.6 million) net profit in the second quarter, beating a consensus forecast of 440.5 billion won from 27 analysts surveyed by Thomson Reuters.
That compared with a 347.1 billion won profit a year earlier and 398.6 billion won in the first quarter of 2010.
The maker of the Cee'd compact and new Sportage SUV posted a 423.7 billion won operating profit during the quarter ended on June 30, above a consensus forecast of a 386.6 billion won profit.
But the second-half outlook for Kia, like most other global automakers, is weak because of concerns that the the U.S. and European economies will see a slowdown in car demand, analysts said.
Kia's shares have risen by more than 50 percent since the beginning of the year, outperforming the wider market's 5 percent gain.
Source : Reuters