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Kia Motors reports 2006 profit plunged 94 percent

Kia Motors reports 2006 profit plunged 94 percent

Kia Motors Corp., South Korea's second-largest automaker, said Friday that 2006 profit plunged due to the strong won and higher marketing expenses.
Kia earned 39.3 billion won (US$41.9 million; euro32.4 million) last year, the company said in a statement, a decline of 94 percent from the previous year.
Sales rose nine percent on year to 17.44 trillion won (US$18.58 billion; euro14.37 billion) falling short of the 19.97 trillion won that the carmaker had targeted.
In terms of operating income, or sales minus the cost of goods sold, the company recorded a loss of 125.3 billion won (US$133.5 million; euro103.3 million), shifting from an operating profit of 74 billion won the year before.
Shares in Kia, which released earnings results after the stock market opened, fell 0.9 percent to 11,550 won US$12; euro9.5) about two hours into the session.
Hyundai Motor Co., which owns a 38.7 percent stake in Kia, said Thursday that its 2006 net profit fell 35 percent, partially because of weakness in Kia's share price.


Updated : 2021-06-13 20:33 GMT+08:00