Kia's Profits Bigger Than Predicted
By Michelle Krebs July 25, 2008Kia beat analysts' projections by reporting a 40-percent increase in its quarterly profit, largely due to higher sales of its minicars in Asia and a weaker won.
Kia reported a second-quarter profit of $85 million, largely due to the fact that it tripled sales of its fuel-sipping Morning minicar in its home market but was also helped by an increase in its U.S. sales. The won's drop against the dollar also pitched in.
Analysts predict new products for the Korean market will generate enough sales and profits in the second half to offset anticipated declines in Europe and the U.S. to achieve higher profits for the year.
Hyundai, meantime, reported an 11-percent decline in profits for the quarter. Hyundai owns 39 percent of Kia.
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