Monday, August 23, 2010

Group MD: Proton to undertake major revamp

SHAH ALAM: PROTON HOLDINGS BHD [] will undertake a major restructuring programme by year-end, says group MD Datuk Syed Zainal Abidin.

Speaking to reporters after announcing its 1QFY11 results here on Monday, Aug 23 he said it would be in line with realigning Proton's operations as it plans to go global and to ensure the sustainability of its business model.

"The restructuring will make us leaner, more aggressive and more efficient," he said, adding that while there was a need to liberalise the local automotive industry, Proton needed to consolidate first.

With regard to possible future partnerships with global original equipment manufacturers (OEMs), Syed Zainal said it was too premature to comment on partnerships at present.

Meanwhile, he said that the proposed consolidation of Proton and Perodua could bring benefits to the industry.

"We will continue to engage with the government (on the matter)," he said.

Proton posted net profit of RM84.68 million for the 1Q ended June'' 30, 2010, up 55.2%'' from RM54.55 million a year ago, underpinned by higher sales volume and improved profit margins from better product mix.

Revenue rose RM2.29 billion from RM1.85 billion in 2009, while earnings per share improved to 15.40 sen from 9.90 sen.

Proton said that in line with the improved market sentiments, its domestic sales volume grew by 17% arising from demands for its three core models, namely, Saga, Persona and Exora.


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