Proton Loss for 3rd Quarter
Filed Under (Business News) by Webmaster on 01-03-2009
Tagged Under : 3rd quarter, Exora, local MPV, loss, Proton
PROTON Holdings Bhd (5304) posted a net loss of RM74.6 million in its third quarter ended December 31 2008, compared to a net profit of RM10.3 million in the corresponding period of the previous year, as car sales slumped amid the global financial crisis.
“The financial crisis and its impact on the global car market and appreciation in foreign currency rates would continue to impact the group’s profitability,” the national carmarker said in a statement to Bursa Malaysia.
Chairman Datuk Mohd Nadzmi Mohd Salleh said the group’s loss was due to the contraction of vehicle sales as buyers turned cautious in the face of the economic downturn.
“Proton’s domestic sales volume declined by 15 per cent compared to the immediate preceding quarter.
“Correspondingly, the group’s revenue for the quarter declined to RM1.5 billion from RM1.8 billion in the preceding quarter mainly due to lower sales volume,” he said in a statement.
Mohd Nadzmi said the loss was compounded by higher foreign currency exchange rates, particularly the Japanese yen and US dollar. The group also incurred higher raw material and component costs.
Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir said the Malaysian automotive industry is expected to face increasingly challenging conditions due to the ongoing global financial crisis.
The group posted a net profit of RM21.1 million for the nine-month period, compared to a loss of RM32.9 million previously.
Revenue for the same period improved by 30 per cent to RM5.1 billion compared to RM3.9 billion before.
A total of 122,355 Proton cars were sold in the nine-month period compared with 99,039 units in the same period of the previous year.
Proton is optimistic about the prospects for the new Proton Exora, a home-grown multi-purpose vehicle which will be launched in mid-April, Syed Zainal Abidin said.
Proton has received firm bookings for more than 800 units of the Exora since bookings opened on February 21.
