Kia’s profit up to $1.58 bln in Q1, thanks to increased ‎production ‎

Kia Corporation, the second largest automaker in South Korea in terms of sales, said today, Wednesday, that its net profit in the first quarter more than doubled from the same quarter of the previous year as a result of increased production and an improved product mix.

According to the Korean Yonhap Agency, Kia said in a statement that its net profit in the three months ending in March jumped to 2.119 trillion won ($1.58 billion) from 1.032 trillion won during the same period last year.

The increase in the company’s net profit was supported by the increase in auto production amid improved chip supplies, higher average selling prices, strong sales of SUVs, and the weakness of the won against the dollar.

In particular, demand for recreational vehicles in the United States and the adoption of three shifts at Kia’s plant in India helped boost sales in the first quarter, the statement said.

The dollar rose to 1,275.58 won in the first quarter from 1,204.95 won in the same period last year, according to Bank of Korea data.

Kia predicted that fluctuations in raw material prices, high interest rates, and high consumer prices will continue to be a source of concern for the auto industry this year.

Operational profit rose 79 percent to 2.873 trillion won in the first quarter, from 1.606 trillion won a year earlier. Sales increased 29 percent to 23.690 trillion won from 18.357 trillion won.

Kia’s net profit more than doubled in the first quarter, thanks to increased production and an improved product mix.