Kia's Q1 Net Profit declined by 0.2%

On Monday, the South Korean automobile manufacturer Kia Motors informed that the net profit in its first-quarter declined by 0.2 percent from a year earlier. One of the major reasons behind this is said to be the global chip shortages. In a statement, the carmaker said that the Net profit for the three months ended in March plunged to 1.032 trillion won ($825 million) from 1.035 trillion won during the same period of last year. In the first three months of this year, Kia's vehicle sales decreased 0.6 percent to 685,739 vehicles, including 564,075 units overseas.

According to a report by Yonhap News Agency, high-deferred corporate taxes were factored into the bottom line in the first quarter. Other than this production of Vehicles and sales also declined in the first quarter because of the constant shortage of semiconductor chips and disrupted supplies of other parts amid the Russia-Ukraine war. However, operating profit climbs 49.2 percent to 1.606 trillion won in the first quarter from 1.076 trillion won a year ago. Sales also increased 10.7 percent to 18.357 trillion won from 16.581 trillion won.