Kia Q4 net jumps 63 percent on improved chip supplies, SUV demand
Kia Corp., South Korea’s second-biggest carmaker, said Friday its fourth-quarter net profit soared 63 percent from a year earlier on improved chip supplies, strong demand for its high-end SUVs and a weak won, reports Yonhap news agency. Net profit for the three months ended Dec. 31 jumped to 2.037 trillion won (US$1.65 billion) from 1.248 trillion won during the same period of last year, the company said in a statement.
“A combination of higher average selling prices, lower incentives and the won’s weakness (against the dollar) buoyed the quarterly bottom line despite high inflation and global chip shortages,” Kia Chief Financial Officer Joo Woo-jeong said in the company’s earnings conference call.
Vehicle production began to improve late last year helped by recovering chip supplies. And robust vehicle sales in South Korea, the United States, and emerging markets except for China and Russia helped the quarterly results, the statement said. Improved chip supplies pushed up vehicle production and sales, while increased sales of environmentally friendly SUVs and a weak won enhanced profitability, it said.
The dollar rose to an average of 1,359.26 won in the fourth quarter from 1,183.17 won a year earlier, according to the Bank of Korea. On Friday, Kia shares closed 0.9 percent lower to 68,700 won on profit taking after reporting a 6.6 percent gain a session earlier reflecting its strong earnings results. The broader KOSPI rose 0.6 percent to 2,484.02 points.
To prop up sales, the company will focus on selling more upgraded versions of the Sportage, Seltos and Telluride SUVs, while planning to launch the all-electric EV9 flagship sedan in the first half of this year.
Operating profit more than doubled to 2.624 trillion won in the fourth quarter from 1.175 trillion won a year ago. Sales rose 35 percent to 23.164 trillion won from 17.188 trillion won.
For all of 2022, net income climbed 14 percent on-year to 5.409 trillion won. Operating profit jumped 43 percent to a record 7.233 trillion won and sales were up 24 percent to 86.559 trillion won during the same period. In 2022, Kia sold a total of 2.9 million vehicles in global markets, and it aims to sell 3.2 million autos this year.
The post Kia Q4 net jumps 63 percent on improved chip supplies, SUV demand appeared first on BGR India.
Kia Corp., South Korea’s second-biggest carmaker, said Friday its fourth-quarter net profit soared 63 percent from a year earlier on improved chip supplies, strong demand for its high-end SUVs and a weak won, reports Yonhap news agency. Net profit for the three months ended Dec. 31 jumped to 2.037 trillion won (US$1.65 billion) from 1.248 trillion won during the same period of last year, the company said in a statement.
“A combination of higher average selling prices, lower incentives and the won’s weakness (against the dollar) buoyed the quarterly bottom line despite high inflation and global chip shortages,” Kia Chief Financial Officer Joo Woo-jeong said in the company’s earnings conference call.
Vehicle production began to improve late last year helped by recovering chip supplies. And robust vehicle sales in South Korea, the United States, and emerging markets except for China and Russia helped the quarterly results, the statement said. Improved chip supplies pushed up vehicle production and sales, while increased sales of environmentally friendly SUVs and a weak won enhanced profitability, it said.
The dollar rose to an average of 1,359.26 won in the fourth quarter from 1,183.17 won a year earlier, according to the Bank of Korea. On Friday, Kia shares closed 0.9 percent lower to 68,700 won on profit taking after reporting a 6.6 percent gain a session earlier reflecting its strong earnings results. The broader KOSPI rose 0.6 percent to 2,484.02 points.
To prop up sales, the company will focus on selling more upgraded versions of the Sportage, Seltos and Telluride SUVs, while planning to launch the all-electric EV9 flagship sedan in the first half of this year.
Operating profit more than doubled to 2.624 trillion won in the fourth quarter from 1.175 trillion won a year ago. Sales rose 35 percent to 23.164 trillion won from 17.188 trillion won.
For all of 2022, net income climbed 14 percent on-year to 5.409 trillion won. Operating profit jumped 43 percent to a record 7.233 trillion won and sales were up 24 percent to 86.559 trillion won during the same period. In 2022, Kia sold a total of 2.9 million vehicles in global markets, and it aims to sell 3.2 million autos this year.
The post Kia Q4 net jumps 63 percent on improved chip supplies, SUV demand appeared first on BGR India.
