SEOUL, Oct. 26 (Yonhap) — Kia Motors Corp., South Korea’s second-biggest carmaker by sales, said Monday its third-quarter net profit plunged 59 percent from a year earlier on massive provisions for recalls and quality management.

For the three months that ended in September, net profit fell to 133.68 billion won (US$118 million) from 325.80 billion won in the same period of last year, the company said in a statement.

Kia put aside 1.26 trillion won for the recall of a faulty engine and quality-related expenses, which was reflected in the quarterly results.

Late last year, Hyundai Motor Group reached a settlement with car owners over its Theta II gasoline direct injection (GDi) engine related to problems, such as engine stall and non-collision fires, in the United States.

Operating profit declined 33 percent to 195.23 billion won in the third quarter from 291.47 billion won a year earlier. Sales rose 8.2 percent to 16.32 trillion won from 15.09 trillion won during the same period.

From January to September, Kia’s net profit also plummeted 64 percent to 525.96 billion won from 1.48 trillion won in the year-ago period.

Kia’s vehicle sales fell 8.8 percent to 1,863,966 units in the first nine months from 2,043,780 a year ago amid the COVID-19 pandemic.