Kia Motors sees fall in Q4 net profit
SEOUL (AFP) – South Korea’s Kia Motors on Friday reported a 6.7 per cent fall in its fourth-quarter net profit, blaming a stronger won and compensation payouts to US customers for inflated gas-mileage claims.
Consolidated net profit for the three months ended December 31 fell to 737.5 billion won ($689 million) from 790.4 billion won a year earlier, the country’s second largest automaker said in a statement.
A stronger won took its toll on the bottom line, and the company had to pay a one-off compensation claim worth 200 billion won to US customers following lawsuits over inflated mileage claims.
The US Environmental Protection Agency found that both Kia and Hyundai Motor – which owns a 34 stake in Kia – had exaggerated the fuel efficiency numbers on 2012 and 2013 models of cars sold in the US market.
Labour strikes at Kia in the third quarter depressed inventories in the October-December period, the company said.
Operating profit slumped 51 per cent to 404.2 billion won from 826.9 billion won a year earlier, while sales rose 2.8 per cent to 11.3 trillion won from 11 trillion won.