Higher expenses for the Lotus Group reduce Proton's profits
KUALA LUMPUR: Proton Holdings Bhd recorded a lower pre-tax profit of RM47.524 million for the six months ended Sept 30, 2011, against the RM185.914 million previously.
Revenue dwindled to RM4.496 billion during the period under review from RM4.530 billion.
"The lower profit is largely attributed to higher expenses incurred by Lotus Group International Ltd, which is in line with Proton's effort to achieve Lotus's long-term business transformation plan," the national automaker said in a filing to Bursa Malaysia Tuesday.
For the second quarter ended Sept 30, Proton recorded a lower pre-tax profit of RM35.418 million versus RM81.265 million registered in the corresponding quarter last year.
In contrast, the revenue for the three-month period rose to RM2.263 billion compared with RM2.240 billion previously.
Proton said the higher expenses incurred by the Lotus Group, however, was partially offset by an increase in Proton's domestic sales volume, approximately two per cent higher in the first six months of the financial year, compared with the same period last year.
"The Malaysian domestic passenger car sales recorded a lower volume in the first nine months of 2011.
"However, the upward trend is unlikely to be strong for the rest of calendar year 2011 due to a seasonal slowdown towards the year-end and the impact of the Thai floods which disrupted both completely knocked-down and completely built-up units, as well as, supply of parts in November," the manufacturer said.
The company, while remaining cautious, will intensify its marketing activities.
"The scheduled launches of new variants for the Exora, as well as, the launching of P3-21A are expected to boost Proton's domestic and international sales volume and market share," the company added.
Proton also said Lotus China's book orders exceeded 300 units and with more showrooms planned for opening across China, the Lotus Group was confident sales volume will increase further.