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.