Kia reports all-time high of 2.12 trillion won in net profit in Q1

Prime Minister Han Duck-soo, Kia CEO Song Ho-sung and officials of the Busan Expo bidding committee take a photo with Kia's EV9 at Hyundai Motor’s exhibition hall in central Seoul. [HYUNDAI MOTOR]

Kia's first-quarter net profit more than doubled from a year earlier, buoyed by increased production and strong sales of high-margin SUV models.

The automaker reported an all-time high of 2.12 trillion won ($1.6 billion) in net profit in the first quarter, up 105.3 percent on year, beating the market consensus of 2 trillion won compiled by FnGuide.

Operating profit also hit a new quarterly high of 2.87 trillion won, a 78.9 percent year-on-year jump, also surpassing market expectations.

Quarterly revenue rose 29.1 percent to 23.7 trillion won, also a record high, in line with analyst consensus.

"Increased production amid improving chip supplies, higher average selling prices, and robust sales of high-margin SUVs contributed to the net result," said Joo Woo-jeong, chief finance officer at Kia, during a conference call Wednesday.

Kia sold a total of 768,251 vehicles in the global market, up 12 percent on year. Domestic sales rose 16.5 percent to 141,740 while overseas sales were up 11.1 percent to 626,511.

Of the total, recreational vehicles, which include SUVs and vans, made up 66.1 percent, up by 5 percentage points.

Sales of eco-friendly increased by 21.1 percent to 133,000 of all car sales, accounting for 18.1 percent of the total.

"We will focus on boosting sales of high-margin models in target markets such as Telluride SUV in the U.S. market, and Sportage and Seltos SUVs in Europe and Indian markets," Joo added. "EV9, Kia's second all-electric vehicle and Korea's first large-size electric SUV, will be introduced in global markets this year after its introduction in Korea in the first half."

Telluride SUV is a North America-dedicated model that is not available in Korea.

With Hyundai Motor announcing an earning surprise on Tuesday, the combined operating profit of Hyundai and Kia came in at 6.5 trillion won in the first quarter, even beating Toyota Motor, the world's largest automaker.

Kia shares closed at 85,700 won on Wednesday, down 1.04 percent from the previous day.

BY SARAH CHEA [chea.sarah@joongang.co.kr]