Kia Motors records 1st-quarter net profit on weak South Korean won, higher domestic sales

Kia Motors Corp. said Friday it posted a net profit in the 1st-Q, helped by a sharply weaker South Korean won & an increase in domestic sales. Kia, South Korea's 2nd-largest automaker, recorded a net profit of 97.38B won ($72.5 M) in the three months ended March 31, it said in a regulatory filing. Kia reported a net loss of 24.84 billion won the same period last year. Total sales fell 5.8% to 3.50 trillion won from 3.72 trillion the year before. The company sold 281,000 vehicles worldwide in the quarter, down 17.5%. Kia is an affiliate of top South Korean automaker Hyundai Motor. Together they form the world's 5th-largest automotive group. Weakness in the won & sales of new models in South Korea pushed Kia in the black, Lee Jae-rok, a company finance exec, said in a press release. The won traded 32% lower against the dollar on average in the 1st-Q compared with the same period in 2008, according to Bank of Korea data. A weaker won can boost profits earned abroad when repatriated & can make South Korean products cheap in overseas markets. Domestic sales gained 6.4% from the year before as South Koreans purchased small models introduced in the 2nd half of 2008, including the Soul, Kia said. Shares in Kia, which announced results in morning trading, fell 4.2% to close at 10,250 won. Hyundai Motor said Thursday net profit dived 42.7% in the 1st-Q as sales fell amid the global slump.