SEOUL, July 24 (AJP)-Kia mirrored bigger sibling Hyundai Motor in posting record quarterly revenue but weaker profitability, as rising costs eroded margins despite robust sales.
South Korea's second-largest automaker said Friday that consolidated revenue rose 12.6 percent from a year earlier to a record 33.04 trillion won ($23.8 billion) in the April-June period.
Operating profit declined 4.9 percent to 2.63 trillion won, despite the record sales, while net profit stood at 2.33 trillion won, according to a regulatory filing. The operating result fell short of market expectations.
The results underscore the challenge facing global automakers as tariffs, intensifying competition and higher costs continue to squeeze margins even as revenue remains resilient through strong demand for higher-value models.
The company is expected to provide further details on the earnings drivers and its outlook for the second half during its earnings conference call later Friday. Shares fell 11 percent to 133,000 won.
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