KUALA LUMPUR: National carmaker Proton Holdings Bhd’s net profit fell 76.4% to RM15.6 million for 2QFY12 ended Sept 30 from RM65.9 million a year earlier, due to higher expenses incurred by its Lotus Group International Ltd.
The group’s revenue was 1% higher at RM2.26 billion compared with RM2.24 billion a year earlier. Earnings per share was 2.8 sen compared with 12 sen a year earlier.
The national carmaker, however, posted a higher profit before tax of RM35 million compared with RM12 million in 1QFY12.
“In the current quarter, the group experienced a higher total sales volume compared with the immediate preceding quarter’s sales volume, driven by stronger demand for Proton’s higher margin models, the Exora and Inspira,” it said in a filing with Bursa Malaysia.
For 1HFY12 ended Sept 30, Proton’s net profit declined 86.6% to RM20.1 million from RM150.6 million, on the back of RM4.5 billion in revenue. Its profit before tax was 75.6% lower at RM47 million compared to RM185 million a year ago. Basic earnings per share fell to 3.7 sen versus 27.4 sen a year earlier.
“The lower profit was largely attributed to higher expenses incurred by Lotus Group, which was in line with the group’s effort in achieving Lotus Group’s long-term business transformation plans,” it said.
Proton added that the higher expenses at Lotus Group were partially offset by an increase in domestic sales volume, which was 2% higher year-on-year.
Proton said it would remain cautious on its outlook due to the challenging environment. It added that sales are expected to be weak due to the seasonal slowdown towards year-end and the impact of the floods in Thailand on the supply chain.
The Malaysian Automotive Association (MAA) recently noted that sales of passenger vehicles had declined 1% to 450,169 for the first 10 months of 2011, compared with 454,889 a year earlier. It said sales in November are expected to be lower than October due to parts supply disruption in Thailand.
On a brighter note, Proton noted that it has opened its first official Lotus Group showroom in China and its order book has exceeded 300 units. “With more showrooms to be opened across China, Lotus Group is confident the sales volume will increase further,” it said.
The Lotus Group also successfully bid for a £10.4 million (RM51.7 million) grant from the UK government.
It added that following the amicable settlement with 1Malaysia Racing Team, Lotus Group will be the sole owner of the Lotus name in Formula One.
According to Bloomberg, Proton has no “buy” calls from analysts covering its stock, but has nine “holds” and four “sells”, with an average fair value of RM2.92.
Proton fell one sen yesterday to close at RM3.09 with 3.13 million shares changing hands.
This article appeared in The Edge Financial Daily, November 30, 2011.
The group’s revenue was 1% higher at RM2.26 billion compared with RM2.24 billion a year earlier. Earnings per share was 2.8 sen compared with 12 sen a year earlier.
The national carmaker, however, posted a higher profit before tax of RM35 million compared with RM12 million in 1QFY12.
“In the current quarter, the group experienced a higher total sales volume compared with the immediate preceding quarter’s sales volume, driven by stronger demand for Proton’s higher margin models, the Exora and Inspira,” it said in a filing with Bursa Malaysia.
For 1HFY12 ended Sept 30, Proton’s net profit declined 86.6% to RM20.1 million from RM150.6 million, on the back of RM4.5 billion in revenue. Its profit before tax was 75.6% lower at RM47 million compared to RM185 million a year ago. Basic earnings per share fell to 3.7 sen versus 27.4 sen a year earlier.
“The lower profit was largely attributed to higher expenses incurred by Lotus Group, which was in line with the group’s effort in achieving Lotus Group’s long-term business transformation plans,” it said.
Proton added that the higher expenses at Lotus Group were partially offset by an increase in domestic sales volume, which was 2% higher year-on-year.
Proton said it would remain cautious on its outlook due to the challenging environment. It added that sales are expected to be weak due to the seasonal slowdown towards year-end and the impact of the floods in Thailand on the supply chain.
The Malaysian Automotive Association (MAA) recently noted that sales of passenger vehicles had declined 1% to 450,169 for the first 10 months of 2011, compared with 454,889 a year earlier. It said sales in November are expected to be lower than October due to parts supply disruption in Thailand.
On a brighter note, Proton noted that it has opened its first official Lotus Group showroom in China and its order book has exceeded 300 units. “With more showrooms to be opened across China, Lotus Group is confident the sales volume will increase further,” it said.
The Lotus Group also successfully bid for a £10.4 million (RM51.7 million) grant from the UK government.
It added that following the amicable settlement with 1Malaysia Racing Team, Lotus Group will be the sole owner of the Lotus name in Formula One.
According to Bloomberg, Proton has no “buy” calls from analysts covering its stock, but has nine “holds” and four “sells”, with an average fair value of RM2.92.
Proton fell one sen yesterday to close at RM3.09 with 3.13 million shares changing hands.
This article appeared in The Edge Financial Daily, November 30, 2011.
