Seoul, October 25 (QNA) – South Korea’s second-largest automaker, Kia, had a 60 percent drop in net profit in the third quarter on an annual basis, due to costs arising from the recall of a number of its cars due to engine problems.
The company announced in data released today, that net profit during the three months to September fell to 458.89 billion won, or USD319 million, from 1.13 trillion won recorded in the same period last year.
Kia set aside 1.54 trillion won to cover vehicle recall costs for complaints about the Theta 2, direct-injection gasoline engine and other user services in the third quarter.
From January to September, Kia’s net profit fell 4 percent to 3.37 trillion won from 3.51 trillion won.
Operating profit rose 19 percent to 4.61 trillion won on sales of 63.39 trillion won, up 20 percent on an annual basis.
(QNA)