KIA's Net Earnings in The 1st. Quarter Increase 289.2%, With Serious Concerns
KIA Corp., South Korea's second-largest automaker, reported on Thursday that its first-quarter net profit has nearly tripled year-on-year thanks to a low effect. base and strong sales of sport utility vehicle (SUV) models, but has raised concerns about the impact of a global shortage of chips on its production.
Net profit for the first quarter reached 1.03 trillion won ($926 million), up 289.2 percent year-on-year, the company said in a report filed with regulators.
Its operating profit for the January-March period increased 142.2 percent year-on-year to 1.07 trillion won ($ 959 million). Sales increased 13.8 percent to 16.58 trillion won ($ 14.855 million).
KIA said the recovery in demand after the ongoing virus and strong sales of high-end SUV models in major markets, like the KIA Telluride and KIA Sorento, spurred its sales growth, while recreational vehicles accounted for almost half of its sales.
In addition, KIA said that in the second quarter, it will focus on marketing for its new K8 sedan and EV6, the first all-electric model built based on Kia's electric vehicle (EV) platform, before its scheduled launch in the second half of this year. The EV6 is rising to be a serious competitor to Chevy Bolt and will form the basis of future performance electric cars at KIA.
Kia estimated an unfavorable business environment in the second quarter, due to global chip shortages, the prolonged ongoing virus and rising raw material costs. Torque News Ford reporter has a good story looking at the causes of chip shortage in the automotive industry, which I recommending to read as well.
Do you think KIA has done well and reported good results in Q1 2021?
Also See a New Development from KIA
KIA online showroom for electric models now open until 10PM in Germany because of high customer demand. From Wednesday to Friday, KIA customers can now also receive advice in the late evening via live video chat on the vehicle.
-#KIA #KIAEV pic.twitter.com/aedmYSPhd8
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Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.
Reference: Yonhap, KIA.