Kia Motors posts record profit in Q4 on incentives

SEOUL, Jan 29 - Kia Motors Corp <000270.KS>, South Korea's No.2 automaker, on Friday posted record quarterly profits, beating market expectations, led by government incentives, new models and equity method gains.

Kia, the world's No.4 car company with its parent, Hyundai Motor Co <005380.KS>, posted a net profit of 603.9 billion won in the fourth quarter, nearly double a consensus forecast of 310.9 billion won in a Thomson Reuters I/B/E/S poll of 23 analysts.

That compared with a 74.8 billion won profit a year earlier and 402.0 billion won in the third quarter of last year.

Kia and Hyundai earnings are expected to improve further this year as the global economic recovery, a better brand image and quality boost their car sales, making up for a stronger Korean won <KRW=> and an end to tax breaks for car buyers, analysts said.

Shares in Kia rose 7.8 percent during the fourth quarter, far outperforming a 0.6 percent gain in the wider market <.KS11>.