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Kia Motors Q2 profit up 7.8% on China sales abroad

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(Globalpost/GlobalPost)

South Korea's second-largest carmaker Kia Motors said Friday its second-quarter net profit jumped 7.8 percent from a year earlier on the back of brisk overseas sales -- mainly in China.

Net profit in the April-June period surged to 1.18 trillion won ($1.06 billion) from 1.09 trillion won a year ago.

Sales were up 4.5 percent year-on-year to 13.1 trillion won, while operating profit fell 8.5 percent to 1.1 trillion won.

China accounted for some 19 percent of total sales in the quarter.

But the company warned that falling growth in car sales world-wide, a possible ending of quantitative easing in the US and a slowing Chinese economy posed risks for the rest of the year.

Kia said it would increase prices to improve profitability, while it also plans to launch two models at home and increase purchase incentives for current models in China.

-- Dow Jones Newswires contributed to this report --

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http://www.globalpost.com/dispatch/news/afp/130726/kia-motors-q2-profit-78-china-sales-abroad