Kia swings to profit in third quarter after 2017 one-off

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Kia swings to profit in third quarter after 2017 one-off

Kia Motors Friday reported a swing to profit in the third quarter from a loss a year earlier.

For the three months ending Sept. 30, Kia posted a net profit of 297.74 billion won ($262 million) from a net loss of 291.77 billion won a year ago, the company said in a statement.

“In the third quarter of 2017, a one-off cost of 864.1 billion won was reflected in the bottom line when a local court ordered the company to retroactively make an overdue payment to employees,” a company spokesman said.

According to the court ruling issued in August last year, regular bonuses are to be included in the “ordinary wage” used as the basis for calculating overtime, severance and other payments.

The won’s strength against the dollar and currencies in emerging markets also weighed on the quarterly net results, the company said.

Kia reported an operating profit of 117.28 billion won in the third quarter from an operating loss of 427.02 billion won a year earlier. Sales fell 0.24 percent to 14.074 trillion won from 14.108 trillion won over the same period, it said.

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