Dearth Of New Models Increase Proton's Q1 Loss

[Mark H]

The Malaysian car maker and Lotus Group parent Proton yesterday reported a net loss of 58.6 million ringgit (€13.3 million) in the fiscal first quarter ended June 30, compared with a loss of 12.4 million ringgit in the same period a year earlier. Revenue fell 31% on-year to 1.42 billion ringgit (€22 million). "While overall industry sales have dipped, Proton has been affected mainly by the lack of new car models," said Proton's managing director Syed Zainal Abidin Syed Mohamed Tahir.

 

Unit sales dropped 27% year on-year to 32,200 units in the quarter. In the January-March quarter, Proton posted a net profit of 127.2 million ringgit (€28.9 million).

 

Proton recorded a profit before tax of RM28.2 million on revenues of RM7.8 billion in its full financial year ended March 2006. Proton's Q4 2005/6 results included revenue up RM1.8 billion and a profit before tax of RM95.3 million, marginally lower than RM96 million profits in Q3 ended December 2005. This is also in marked contrast to a loss of RM4.3 million in Q1, and a loss of RM158.8 million in Q2 of this financial year ended 31 March 2006.

 

At group level, Proton generated a profit before tax of RM28.2 million for the financial year, lower than the RM412.3 million recorded in the previous corresponding year.

 

Syed Zainal Abidin said Proton would improve operational efficency and boost exports to return to profit, noting that unit sales rose 21% month-on-month to 10,018 units in July following the launch of the Satria Neo model in June. So far, 2,750 Satria Neo cars have been sold with another 4,000 orders in hand.

 

Proton has said it plans exports to China, India and Southeast Asia to raise its total exports to 100,000 cars by 2008.

 

(www.kiplingerforecasts.com, 30 August, proton.com, 30 May)

 

http://www.autoindustry.co.uk/news/30-08-06_1

[AndyS]

And Zainal still has his head up his Arse and has about as much clue as running a car company as he did about project management - nice ideas but absolutly no idea of how to implement them!