Kia Motors joins Hyundai in reporting 3Q profit fall as stronger won hits
South Korea's second-largest carmaker Kia Motors Corp. says its third-quarter income plunged 27 percent from a year earlier as a stronger won dented profit.
Kia said Friday its July-September net income fell to 657.4 billion won ($621 million) from 903.3 billion won a year earlier. From the previous quarter, the bottom line sank 36 percent.
Revenue inched down 2 percent to 11.5 trillion won while operating income fell 19 percent to 566.6 billion won.
Because more than 85 percent of Kia vehicles are produced and sold overseas, the stronger won against other foreign currencies hit Kia harder than other companies with bigger domestic business.
Its quarterly sales increased from 712,000 vehicles to 630,000 vehicles a year earlier but profit got thinner because of a sharp appreciation of the local currency.