Kia Motors announced on July 24 that its first-half operating profit amounted to 1.16 trillion won, down 22.8 percent year on year. Kia Motors registered 23.61 trillion won in sales revenue, 1.16 trillion won in operating profit, 1.90 trillion won in pre-tax profit, and 1.64 trillion won in net profit during the first half of this year.
Year on year, its revenue fell 1.5 percent, and operating profit 22.8 percent. Its operating profit-to-sales ratio also declined by 1.4 percentage points to 4.9 percent.
Kia Motors blamed the disappointing results on the deterioration of profitability resulting from unfavorable foreign currency movements, including the plunge in the value of the Russian Ruble and the weak euro. Another factor is the decline in overall sales resulting from the economic slowdown of emerging markets.
For the first half of this year, Kia Motors sold 1,437,000 units worldwide, down 0.4 percent from a year ago. Domestic sales rose 10.7 percent thanks to robust sales of new SUV and minivan models.
Kia Motors achieved a positive growth of 4.6 percent and 7.6 percent in the U.S. and European markets in the first half of this year. The company, however, suffered a negative growth of 2.4 percent in the Chinese market.
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