Friday, February 25, 2011

Proton posts RM60.1m net loss in 3Q, weighed by Lotus Group, branding costs

KUALA LUMPUR: PROTON HOLDINGS BHD [] posted a net loss of RM60.1 million in the third quarter ended Dec 31, 2010 compared to net profit of RM79.68 million a year ago, due mainly to higher branding costs as well as the restructuring expenses incurred by Lotus Group International Ltd (LGIL).

The national car maker said on Friday, Feb 25 that revenue for the quarter fell by 8.96% to RM1.83 billion from RM2.01 billion last year. Loss per share was 10.90 sen compared to earnings per share 14.50 sen previously. Net assets per share was RM9.73.

For the nine months ended Dec 31, 2010 Proton's net profit fell 58.1% to RM90.5 million from RM216.29 million, although revenue rose to RM6.36 billion from RM5.97 billion.

Proton said as part of the transformation plans to turn around LGIL, it had started investing in rationalisation of dealers network, and branding activities to deliver the five-year business plans.

Proton also said that during 3Q, it had experienced lower domestic sales volume, as well as increased promotional and marketing spending by a principal subsidiary.

On its prospects, Proton said domestic car sales recorded a growth of 13% to hit an all-time high for the calendar year 2010 compared to 2009.

It also said that Malaysian Automotive Association expects total industry volume to continue growing in calendar year 2011 as a rate of 2% as positive trends continue.

'The improved domestic market outlook and rising fuel prices augurs well for Proton's core models.

'Coupled with the good response and delivery of the Inspira, our prospects for growing sales volume and increasing market share for the fourth quarter of the financial year ending March 31, 2011 are good,' it said.

No comments:

Post a Comment