Kia Motors reports 35 percent slump in 1Q profit
SEOUL, South Korea (AP) - Kia Motors Corp. says first quarter net profit tumbled 35 percent from a year earlier due to a fall in vehicle production at domestic plants and lower exports.
South Korea's second-largest automaker said Friday that profit fell to 783.9 billion won ($706 million) for the January-March period from 1.2 billion won a year earlier.
Sales fell 6 percent to 11.1 trillion won and operating profit dropped 35 percent to 704.2 billion won.
Kia blamed lower production on its union's refusal to work extra shifts amid a dispute over compensation. Output at Kia's South Korean plants fell 8 percent, resulting in lost production of about 32,000 vehicles compared with a year earlier.
Kia is a unit of Hyundai Motor Group, the world's fifth-largest auto maker.
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