Hyundai, Kia Post Profits
By Kim Hyun-cheol
Staff Reporter
Sister automakers Hyundai and Kia posted encouraging accounts Thursday, despite the global financial crisis.
Hyundai's yearly operating profit fell 3.5 percent to 1.9 trillion won ($1.4 billion) from the previous year, while net profit also dropped 13.9 percent to 1.4 trillion won. Overall sales, however, grew 5.1 percent to hit a new record of 32.2 trillion won, thanks to the weak won advantage, the automaker said.
Its sales in the fourth quarter rose 1.1 percent to 8.8 trillion won, but operating profit was down 8.9 percent year-on-year to 581 billion won.
"Hyundai recorded better earnings than its global competitors in spite of deteriorating business conditions," Hyundai said
Kia announced that it had posted an annual operating profit of 308.5 billion.
Its net profit stood at 113.8 billion won, shooting up over seven times from the previous year. Kia recorded 55.4 billion won in operating deficit in 2007. Overall sales last year were up 2.7 percent to 16.4 trillion won.
Kia's quarterly operating profit of 35.9 billion won is far less than most analysts' expectation, but it has succeeded in freeing some of its overseas units from capital erosion.
This year's business plans for the two, including sales targets, will be announced in mid-February.