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By Bloomberg

Kia Motors Corp. reported profit that missed analyst estimates by the widest margin in more than three years, after the weaker yen and ruble eroded overseas earnings at South Korea’s second-largest carmaker.

Net income slumped 54 percent to 436.2 billion won ($402 million) in the fourth quarter, the Seoul-based company said in a statement today. That was 46 percent lower than the 805.2 billion won average of 30 analyst estimates compiled by Bloomberg and the biggest gap since at least the second quarter of 2011, according to data compiled by Bloomberg.

Kia joined affiliate Hyundai Motor Co. in reporting lower net income after the plunge in the ruble lowered the repatriated value of earnings in Russia and higher U.S. market incentives to fend off Japanese carmakers eroded profit. Kia will temporarily increase vehicle prices in Russia this year and lower production at plants that are vulnerable to currency risks, including factories in South Korea and Slovakia, Chief Financial Officer Han Chun Soo said on a conference call.

Kia fell 1.9 percent to 49,250 won, the lowest level since Nov. 4. The benchmark Kospi index rose 0.8 percent.

Full-year net income fell 22 percent, the biggest drop since 2006, for a second straight year of declines while sales decreased 1.1 percent. Kia will raise its year-end dividend payout by 43 percent to 1,000 won a share, Han said today.