Kia Motors Says 1Q Net Profit Soared

SEOUL, South Korea May 13, 2003; Dow Jones reportsd that Kia Motors Corp. said Tuesday its first-quarter net profit jumped 43% to 141.6 billion won ($118.8 million) from 98.9 billion won, largely on robust sales of pricier models both domestically and overseas.

Revenue rose 18% to three trillion won from 2.54 trillion won during the first three months ended March 31, with a total of 208,113 units sold, it said in a disclosure to the Financial Supervisory Service.

South Korea's second-largest car maker's local sales fell 10% on year to 88, 340 units during the period, while exports climbed 28% to 119,773 units.

"Despite a difficult business environment, our results were better than last year, as we were able to boost exports as well as increase sales of high value added models such as Sorento," the company said in a statement.

Operating profit rose 8.7% on year to 130.6 billion won in the first quarter and recurring profit jumped 20% to 152 billion won.

Kia Motors didn't immediately provide reasons for a sharp rise in nonoperating income, which boosted its first-quarter bottom-line.

Kia Motors's total investment for 2003 is set at 1.25 trillion won, including 847.5 billion won for research and development, it said. The total investment amount for this year is 56% higher than 800.3 billion won in 2002.

Kia Motors aims to boost its auto sales by 16% on year to 1.04 million units this year and generate 16.39 trillion won in revenue, up 17% on year.