South Korea’s automaker Kia Motors Corp recorded relatively impressive gains in the second quarter despite reduced sales at home and abroad amid global-side economic slowdown thanks to brisk sales in its sports utility and other higher-end lineup.

The carmaker recorded 825.6 billion won ($729 million) in net profit in the second quarter, up 10.6 percent from the same period of last year. Its operation profit rose 18.5 percent to 770.9 billion won. Sales gained 16.1 percent to 14.45 trillion won.

For full first half, the sister company of Hyundai Motor registered 1.77 trillion won in net profit, up 7.3 percent on year. Its operating profit jumped 20.8 percent to 1.4 trillion won. Sales rose 14.7 percent to 27.1 trillion won. Its operating profit margin increased 0.3 percentage point on year to 5.2 percent.

Domestic shipment declined 8.8 percent on year to 788,561 units due to depressed demand in China and other emerging markets. Sales from overseas factories rose 0.6 percent to 668,029 units thanks to demand recovery in the U.S. and European market. Global sales overall fell 4.7 percent from a year ago to 1,456,590 units.

Yet the company’s balance sheet was helped by strong performance of its recreational vehicles riding on global-wide popularity of SUVs. Share of RVs in total sales increased to 38.4 percent from 34.1 percent.

The company will be diversifying the RV lineup by adding B-segment crossover utility vehicle (CUV) models in Europe next year, said Han Chun-Su, the Chief Financial Officer of the company, in a conference call following release of the second-quarter earnings.

It also plans to bolster its eco-friendly front.

“We are releasing Optima Hybrid and Plug-In Hybrid models and Niro models, in Europe and the U.S. in the third quarter to reinforce eco-friendly brand image,” Han said.

The carmaker also will release Sorento-class models in China, followed by A-segment SUVs and K5 Plug-In Hybrid models. The share of Kia’s SUV sales in China increased to 40 percent in the first half of this year from 26 percent in 2015.

The company’s shares closed Wednesday at 43,150 won, up 100 won or 0.23 percent from the previous session.

By Noh Won-myung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]