KUALA LUMPUR: TAN CHONG MOTOR HOLDINGS BHD []'s net profit rose 14.5% to RM74.08 million in the first quarter ended March 31, 2011 from RM64.67 million a year ago, boosted by the sale of its Nissan Teana.
It said on Wednesday, May 18 that revenue increased by 29.8% to RM1.13 billion from RM870.36 million. Earnings per share were 11.35 sen from 9.91 sen a year ago.
It described the revenue as a record compared with the previous peak of RM1 billion in 3Q 2008 before the global financial crisis.
'Net income stood at RM74 million and this included a non-cashflow translation loss of RM5.4 million arising from a devaluation in the Vietnam Dong against US Dollar and US Dollar against a stronger ringgit,' it said.
Tan Chong said the 1Q2001 financial statement also consolidated 74% subsidiary, Nissan Vietnam Limited (NVL) and it further squeezed operating margins to 9.6% in 1Q 2011 from 10.8% a year ago.
At the margin, NVL achieved EBITDA break even in Q1 2011 after taking over the company last November. In addition, cost as a percentage of revenue increased by 1% as the Group continues to expand across regional markets and new products.
When compared with the 4Q2010, Tan Chong said the all-new NISSAN Teana drove the performance in 1Q2011 because it was launched on 23 November 2010 and the bulk of sales were recognised at the start of 2011 instead of 2010.
'Due to a higher value added product offering, Operating profit margins grew from 8.5% in 4Q10 to 9.6% in 1Q11 despite the drag in forex and NVL. Notwithstanding exceptional quarterly sales and stockpiling just in time, inventories stood at RM878.8 million as at March 31, 2011 compared to over RM1.0 billion as at Dec 31, 2010,' it said.
On the current year prospects, Tan Chong said although booking levels remain elevated, it 'started to pace production' as a response to mitigate risks in the auto supply chain (since the earthquake in Japan on March 11).
'Sales momentum may slow in 2Q but pick up again in 2H 2011. Nissan is focusing all efforts to ensure swift restoration of its production operations,' it said.
It said on Wednesday, May 18 that revenue increased by 29.8% to RM1.13 billion from RM870.36 million. Earnings per share were 11.35 sen from 9.91 sen a year ago.
It described the revenue as a record compared with the previous peak of RM1 billion in 3Q 2008 before the global financial crisis.
'Net income stood at RM74 million and this included a non-cashflow translation loss of RM5.4 million arising from a devaluation in the Vietnam Dong against US Dollar and US Dollar against a stronger ringgit,' it said.
Tan Chong said the 1Q2001 financial statement also consolidated 74% subsidiary, Nissan Vietnam Limited (NVL) and it further squeezed operating margins to 9.6% in 1Q 2011 from 10.8% a year ago.
At the margin, NVL achieved EBITDA break even in Q1 2011 after taking over the company last November. In addition, cost as a percentage of revenue increased by 1% as the Group continues to expand across regional markets and new products.
When compared with the 4Q2010, Tan Chong said the all-new NISSAN Teana drove the performance in 1Q2011 because it was launched on 23 November 2010 and the bulk of sales were recognised at the start of 2011 instead of 2010.
'Due to a higher value added product offering, Operating profit margins grew from 8.5% in 4Q10 to 9.6% in 1Q11 despite the drag in forex and NVL. Notwithstanding exceptional quarterly sales and stockpiling just in time, inventories stood at RM878.8 million as at March 31, 2011 compared to over RM1.0 billion as at Dec 31, 2010,' it said.
On the current year prospects, Tan Chong said although booking levels remain elevated, it 'started to pace production' as a response to mitigate risks in the auto supply chain (since the earthquake in Japan on March 11).
'Sales momentum may slow in 2Q but pick up again in 2H 2011. Nissan is focusing all efforts to ensure swift restoration of its production operations,' it said.
No comments:
Post a Comment