Kia Corp. confirmed a 23.5% drop in first-quarter net profit to 1.83 trillion won ($1.2 billion), missing analyst estimates of 1.91 trillion won, due to US import tariffs and a weakening Korean won—issues flagged in pre-earnings forecasts. Sales still hit a record 29.5 trillion won amid 5.3% growth.
Kia Corp., South Korea's second-largest automaker, reported Q1 net profit down 23.5% to 1.83 trillion won from 2.39 trillion won a year ago, per its April 24 regulatory filing. This fell short of analyst expectations compiled prior to the release (1.91 trillion won average). Operating profit dropped 26.7% to 2.2 trillion won, steeper than the forecasted 22.6% decline to 2.32 trillion won, while sales rose 5.3% to a record 29.5 trillion won (vs. expected 29.62 trillion won).
Kia attributed the shortfall to US import tariffs costing 755 billion won—fully impacting the quarter—and currency headwinds from a weaker Korean won, echoing concerns raised in market previews for Hyundai and Kia earnings.
Global vehicle sales were 779,000 units, up 0.9% year-on-year and aligning with preliminary data (779,169 units), including 141,000 in Korea and 638,000 overseas. Eco-friendly vehicles made up 232,000 units (29.7% of total), up from 23.1% last year.
"Despite short-term costs like US tariffs, we are expanding global market share and pursuing qualitative growth via eco-friendly vehicles," a company official said. "We will sustain profitability by improving sales mix toward high-value-added models and cutting costs."
