Kia Motors is planning to offer its first full-year of profit in 2019, but the company is in danger of running out of money to make a profit.
Kia Motors CEO, David Loeffler, announced Tuesday that the company will report its first profit for 2019 on Wednesday, but it’s unclear whether it will be enough to satisfy investors’ appetite for a cash infusion.
“This is a great opportunity for us to continue to grow our business and expand the product portfolio,” Loeppler said.
The company is currently facing an enormous cash crunch.
Kieslowski said Kia Motor Finance Inc. (KMSF) had $1.9 billion in cash, which is almost a third of its total debt.
That debt is due to be paid off by 2020.
“We are confident that we will be able to pay this debt off,” he said.
Loepplers forecast a profit of $5.4 million, a huge jump from last year’s profit of about $3.6 million.
The company said it had an average profit per share of about 22 cents a share, compared to a profit per unit of sales of $2.30 last year.
Lueffler said the company’s sales grew by about 50 percent, from about 4,500 vehicles to about 5,400, as it moved into the new models that were launched this year.
The new cars have been hailed as the company that can replace the gas guzzler as the car of choice for the elderly and disabled.KMSFs sales have been buoyed by its introduction of a new fuel-efficient vehicle, the Bolt EV.
It is the first fully electric vehicle Kias to be on the market.
The first Bolt was launched in the U.S. in August.
Kias stock rose more than 8 percent to $1,300 on Tuesday.
Shares of Kia fell 1.3 percent in after-hours trading to $16.40.