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Kia Motors posts 2nd straight net loss in most recent quarter

Kia Motors posts 2nd straight net loss in most recent quarter

Kia Motors Corp. posted a net loss in the final three months of last year, marking the second straight quarter of red ink at South Korea's second-largest automaker.
Kia lost 200 million won (US$212,720; euro164,631) in the three months ended Dec. 31, the company said, compared with profit of 263.7 billion won in the same period a year ago.
In October Kia reported a loss for the third quarter, its first since 1998.
Sales in the fourth quarter rose 11 percent to 5.09 trillion won (US$5.42 billion; euro4.18 billion).
Kia gave no reason for the fourth-quarter loss, but said that strength in the South Korean won and higher marketing expenses caused profit for the all of 2006 to plunge.
Kia earned 39.3 billion won (US$41.9 million; euro32.4 million) last year, a decline of 94 percent from 2005.
Annual sales rose 9 percent on year to 17.44 trillion won (US$18.6 billion; euro14.4 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, Kia 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, rose 0.4 percent to 11,700 won US$12; euro9.6) in mid-afternoon trading after declining earlier.
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.
Kim Deuk-ju, Kia's director of investor relations, said in the statement that the company will make profitability a top priority, cutting costs from car development to production.


Updated : 2020-12-03 12:54 GMT+08:00