Proton’s Half Year Loss – RM 336 Million
Mahathir – Proton Adviser
KUALA LUMPUR, — National carmaker Proton Holdings Bhd has posted a bigger loss in the first half financial year ended Sept 30, 2006 on lower sales volume as a result of sluggish and competitive market environment.
In an announcement to Bursa Malaysia, Proton said its pre-tax loss for the half year increased to RM336.016 million from RM169.146 million in the corresponding period of 2005 as revenue dropped to RM2.693 billion from RM3.859 billion.
For the second financial quarter ended Sept 30, Proton registered a pre-tax loss of RM240.480 million, a sharp increase from a loss of RM161.785 million in the previous corresponding quarter as revenue fell to RM1.275 billion from RM1.805 billion.
Proton said efforts to reduce operating expenditure had not been fully realised and dampened by lower production volume.
The results were also affected by increase in promotional expenses, additional expenditure required for research and development and component price increases.
Looking forward, it said the automotive industry will continue to experience low sales due to lower trade-in value, high interest rates, tightening in credit screening and loan approvals.
Lower sales have resulted in higher inventories, which would require increased promotional and selling expenses to reduce inventory level, it said.
However, despite the difficult environment the group will continue its efforts to increase sales through intensified marketing activities, effective dealers network management while reducing cost to remain competitive, it said.
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