Thursday, November 17, 2011

Tan Chong 3Q net profit rises 10.6% to RM54.56m

KUALA LUMPUR (Nov 17): TAN CHONG MOTOR HOLDINGS BHD [] net profit for the third quarter ended Sept 30, 2011 rose 10.6% to RM54.56 million from RM49.34 million a year earlier, due mainly to favourable foreign exchange rates.

It said on Thursday, Nov 17 that revenue for the revenue for the quarter rose to RM905.36 million from RM871.59 million in 2010.

Earnings per share was 8.36 sen compared to 7.56 sen in 2010, while net assets per share was RM2.77.

For the nine months ended Sept 30, Tan Chong's net profit rose to RM185.1 million from RM177.67 million in 2010, on the back of an increase in revenue to RM2.98 billion from RM2.67 billion.

Reviewing its performance, Tan Chong said its nine months results showed improved top and bottom-line despite the Japan earthquake that disrupted the global supply chain after March 2011.

The company said the cost to income ratios increased with the first year of consolidation of Nissan Vietnam Ltd (NVL) which had yet to break-even after taking into account translation losses in a weaker Vietnamese Dong against a stronger denominated ringgit (its reporting currency) and initial costs incurred for regional expansion and upgrade of existing facilities.

On its current year prospects, Tan Chong said that after two back to back disasters during FY2011, there had been considerable dislocation in supply chains from Japan to Thailand.

The company however said it had sufficient inventories after the earthquake in Japan and before the floods in Thailand.

'Although Q4 is challenging with specific model shortages - by pacing sales and developing alternate sources of auto component supply, our inventory buffer can last long enough for production to quickly catch up with end demand.

'In the near term as momentum unravels, the group continues to build upon its position towards market share gains in the long term,' it said.


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