Bloomberg reports Kia has missed analyst profit estimates for the second quarter after net income slipped to $965 million at current conversion rates. On average, analysts estimated the South Korean automaker would bring in somewhere around $1.1 billion, though Kia did see its revenue increase by 8.4 percent. The automaker said its less-than-estimated profit results came down to increased spending as the company strove to market its new Pride subcompact and K9 luxury sedan (a model that will be known as Quoris in other markets). Kia also saw its operating profit increase by 18 percent, falling just shy of industry estimates. But additional marketing wasn't solely to blame for the missed goals.

The report also indicates recent strikes by workers vying for better pay and reduced hours may have had an impact on the bottom line as well. All told, Kia estimates the company lost production of 5,450 units worth somewhere around $82.5 million during strikes held on July 13 and 20.

The news isn't all dark and stormy, however. Kia sales in China blossomed by around 18 percent, and Europe saw an even bigger increase of around 25 percent thanks largely to the introduction of the Pride. Europe saw its industry-wide sales slacken by 3.2 percent by comparison.


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    • 1 Second Ago
  • 8 Comments
      Dmitriy Markelov
      • 2 Years Ago
      I recall someone in Korea telling me that they get paid about $50k a year or so which is much higher than most plant workers.
      Keldon
      • 2 Years Ago
      I blame cheap, junkie cars.
      Raymond
      • 2 Years Ago
      You can't keep the slave labor going for ever some day you will have pay on a scale with the rest of the advanced countries.
        Kahz
        • 2 Years Ago
        @Raymond
        except that they aren't 'slave labor'. THis isn't regarding China.
      World Up
      • 2 Years Ago
      Raymond, I am afraid you have countries mixed up with China. Most of Hyundai & Kia union workers get paid 70k and up plus benefits, pensions, etc..and cost of living is generally cheaper in South Korea compared to most of urbanized American cities on either coast(SF, LA, Seattle, NY, Boston, etc..). A lot of Koreans don't like Hyundai and Kia union workers because they feel that the workers get paid too much for what they do or for their educational background. Most people feel that the workers are being too greedy.
      World Up
      • 2 Years Ago
      Raymond, one more thing. There is a reason Hyundai and Kia are building plants left and right in Southern states of this "advanced country" of ours.
      anakrino7
      • 2 Years Ago
      That's probably just the cost of doing business. All these types of reports are hyper-sensitive. Kia (according to the article) was not really having any major loss. To think that this was only one month. There's always next month. At the current steady growth rate, this will be forgotten two months from now.