Kia Motors Corp., South Korea’s second-largest automaker, said Friday its first-quarter net profit fell 34.7 percent from a year earlier due to decreased profits from its equity investments.

Kia’s consolidated net profit fell to 783.9 billion won ($706 million) in the January-March period, from 1.2 trillion won a year earlier, the Seoul-based company said in a regulatory filing.

The carmaker said operating profit dropped 35.1 percent to 704.2 billion won, as revenue fell 6 percent to 11.08 trillion won. Kia blamed the revenue decline on the South Korean won’s strength that makes Kia’s cars more expensive in overseas markets and undermines its competitive edge.

The South Korean currency rose 4.6 percent against the Japanese yen in the first three months of this year, while the won fell 7.9 percent against the U.S. dollar. (Yonhap News)