Kia's Quarter Loss Widens on Weaker Sales


Kia Motors, South Korea's No. 2 automaker, posted a bigger-than-expected quarterly net loss, hit by price cuts earlier this year and weaker sales.

Kia, an affiliate of top South Korean car maker Hyundai Motor, reported a net loss of 55.1 billion won ($60.14 million) in the third quarter, bigger than a 14.5 billion loss forecast by eight analysts polled by Reuters.

That compared with a 43.9 billion won loss a year ago and a 61.4 billion won profit in the previous quarter.

Kia is expected to keep struggling in coming quarters as the won currency is seen remaining strong against the dollar.

Local sales are also unlikely to benefit from faster growth in private consumption in Asia's fourth-largest economy due to a lack of new models. Rising raw material prices and weaker sales in China are other concerns, analysts say.

But some predict Kia's Slovakia factory and the won's weakness against the euro may help the maker of the Sportage sports utility vehicle.

Shares in Kia, which has a market value of $3.9 billion, fell 13.5 percent in the third quarter quarter, underperforming an 11.6 percent rise in the broader market.