UPDATE 1-Kia swings to operating profit in Q1; shares jump

(Adds details, analyst, shares)

By Cheon Jong-woo

SEOUL, April 25 (Reuters) - Kia Motors Corp (000270.KS: Quote, Profile, Research, Stock Buzz) said on Friday it swung to a first quarter operating profit, beating expectations, buoyed by a weaker won and a rise in higher-margin local sales.

South Korea's No.2 auto maker, an affiliate of the country's top auto maker Hyundai Motor Co (005380.KS: Quote, Profile, Research, Stock Buzz), is expected to benefit from a softer won <KRW=> as it sells almost 80 percent of its products abroad and from higher sales of the Morning minicar.

A company official said in an investor relations meeting after the results the company expected to post a net profit as early as the end of the first half. The firm reported a net loss of 24.8 billion won, a little more than the 21.3 billion loss forecast.

After the result, Kia's shares, valued at around $4.5 billion, jumped 4.03 percent to 12,900 won as of 0154 GMT, easily outperforming a 1.37 percent rise in the broader market.

Looking ahead a lack of hit models, especially in the high-end segment, and rising prices of raw materials could put pressure on the company, analysts say.

"A weaker won is positive to Kia's operating side. But it is not necessarily good as the company has too much foreign currency debt," said Cho Soo-hong, an auto analyst at Hyundai Securities.

"Its overseas sales units have been overstocked and the stockpile may affect sales of new models," he added.