Proton Reports RM58.6 Million First-quarter Loss
KUALA LUMPUR, Aug 29 (Bernama) -- Proton Holdings Bhd announced Tuesday that its after-tax loss rose to RM58.649 million in the first quarter ended June 30, 2006, from RM12.661 million in the corresponding quarter of the previous year.
Its pre-tax loss increased to RM95.536 million from RM7.361 million as revenue dropped to RM1.418 billion from RM2.054 billion previously.
In a statement, Proton attributed the loss to a decline in total car sales in the country and the lack of a fresh line-up of car models as the company transitioned to several new models starting in 2007.
Proton's car sales for the first quarter stood at 32,200 units, compared to 44,367 units for the corresponding period last year.
The drop in auto purchases was proportionate to industry trends, where sales across the board declined by five percent in the first half of the year against a year earlier, the national car maker said.
"While overall industry sales have dipped, Proton has been affected mainly by the lack of new car models. The bulk of our models have been in the market for several years now while the market is seeking something more fresh and exciting," said managing director Syed Zainal Abidin Syed Mohamed Tahir.
The Proton Saga was first introduced in 1985 while the Wira was launched in 1993, the Perdana in 1995.
Proton's Waja was launched in 2000 and the Gen.2 Campro was rolled out in 2004.
The national car maker's latest models are the Savvy, available since last year, and the Satria Neo which was launched middle of this year.
Proton's sales were further affected by loan terms, interest rates and lower used car values which required a higher cash top-up to switch to a new car, Syed Zainal Abidin said.
Expectations among consumers that car prices would fall further also fuelled the decline, according to him.
Syed Zainal Abidin said while cost-cutting measures and better implementation of component sourcing were bearing fruit, promotional and marketing costs have risen.
"These expenses were recorded in the first quarter though the results of this promotion will only be visible in the upcoming quarter," he explained.
As an early indication, Proton's car sales in July rose 21 percent from the previous month, the company said.
Registration of Proton cars with the Road Transport Department in July stood at 10,018 compared to 8,328 recorded in June, while total industry volume increased by five percent.
Proton said its latest model, Satria Neo, has been well-received.
Since its launch in June, 2,750 vehicles were sold with 4,000 orders in hand, surpassing Proton's expectations for the niche three-door hatchback.
"This is again evidence that the market wants new cars. Because the development of new cars takes up to two years, Proton can only address this issue around next year," Syed Zainal Abidin said.
He said the first-quarter losses were balanced by several initiatives which were implemented since the beginning of this year.
These included cost-cutting measures, reduction in operational expenses and streamlining the procurement of components where Proton now sources raw material in bulk for local vendors, he added.
Its consolidation and renegotiation with component vendors as well as the implementation of electronic bidding and procurement systems, were also constantly being reviewed, Syed Zainal Abidin said.
To improve the next quarter's performance, he said that Proton would continue to focus on improving operational efficiencies, while simultaneously accelerating its implementation.
At the same time, Proton would continue to strengthen its performance in the domestic market while promoting export growth, he added.
"Proton's continuous efforts to improve quality have resulted in better customer satisfaction. Warranty claims for Proton's latest additions of Savvy and Satria Neo have been kept minimal at an average of 0.5 percent," Syed Zainal Abidin said.
"Our other key focus is to enhance cost competitiveness, more effective use of resources, and to introduce a bigger variety of new models over the next year or two," he said.
-- BERNAMA
Proton's net loss widens to RM58.65m in 1Q
Proton Holdings Bhd's net loss widened by 375% to RM58.65 million in the first quarter ended June 30, 2006 from a loss of RM12.35 million a year earlier due to lower sales amidst a competitive environment.
It said on Aug 29 that the wider loss was due to a decline in total car sales and the lack of a fresh line-up of car models at Proton as it transitioned to several new models starting next year.
Proton car sales for Q1 fell 27% to 32,200 units from 44,367 a year earlier.
Revenue fell 30.7% to RM1.42 billion from RM2.05 billion. At pre-tax level, its loss totalled RM95.54 million against a loss of RM7.36 million a year earlier.
Its managing director Syed Zainal Abidin Syed Mohamed Tahir said the bulk of its models had been in the market for several years. "The market is seeking something more fresh and exciting.”
He said Proton sales were affected by loan terms, interest rates and lower used car value, which required a higher top up to switch to a new car.
Syed Zainal said its promotional and marketing costs rose in its 1Q, the results of which would only be visible in the next quarter.
He added that as an early indication, Proton’s car sales last month rose 21% from the previous month.
It said registration of Proton cars with the Road Transport Department in July stood at 10,018 units compared with 8,328 units in June, while total industry volume rose by 5%.
He said it had sold 2,750 units of its latest model, Satria Neo, with another 4,000 orders in hand since its launch in June, surpassing its expectations for the niche three-door hatchback.
Syed Zainal said the 1Q losses were balanced by several initiatives since early this year, including cost cutting measures, reduction in operational expenses and streamlining of procurement.
“Our other key focus is to enhance cost competitiveness, more effective use of resources, and to introduce a bigger variety of new models over the next year or two,” he added.
Its pre-tax loss increased to RM95.536 million from RM7.361 million as revenue dropped to RM1.418 billion from RM2.054 billion previously.
In a statement, Proton attributed the loss to a decline in total car sales in the country and the lack of a fresh line-up of car models as the company transitioned to several new models starting in 2007.
Proton's car sales for the first quarter stood at 32,200 units, compared to 44,367 units for the corresponding period last year.
The drop in auto purchases was proportionate to industry trends, where sales across the board declined by five percent in the first half of the year against a year earlier, the national car maker said.
"While overall industry sales have dipped, Proton has been affected mainly by the lack of new car models. The bulk of our models have been in the market for several years now while the market is seeking something more fresh and exciting," said managing director Syed Zainal Abidin Syed Mohamed Tahir.
The Proton Saga was first introduced in 1985 while the Wira was launched in 1993, the Perdana in 1995.
Proton's Waja was launched in 2000 and the Gen.2 Campro was rolled out in 2004.
The national car maker's latest models are the Savvy, available since last year, and the Satria Neo which was launched middle of this year.
Proton's sales were further affected by loan terms, interest rates and lower used car values which required a higher cash top-up to switch to a new car, Syed Zainal Abidin said.
Expectations among consumers that car prices would fall further also fuelled the decline, according to him.
Syed Zainal Abidin said while cost-cutting measures and better implementation of component sourcing were bearing fruit, promotional and marketing costs have risen.
"These expenses were recorded in the first quarter though the results of this promotion will only be visible in the upcoming quarter," he explained.
As an early indication, Proton's car sales in July rose 21 percent from the previous month, the company said.
Registration of Proton cars with the Road Transport Department in July stood at 10,018 compared to 8,328 recorded in June, while total industry volume increased by five percent.
Proton said its latest model, Satria Neo, has been well-received.
Since its launch in June, 2,750 vehicles were sold with 4,000 orders in hand, surpassing Proton's expectations for the niche three-door hatchback.
"This is again evidence that the market wants new cars. Because the development of new cars takes up to two years, Proton can only address this issue around next year," Syed Zainal Abidin said.
He said the first-quarter losses were balanced by several initiatives which were implemented since the beginning of this year.
These included cost-cutting measures, reduction in operational expenses and streamlining the procurement of components where Proton now sources raw material in bulk for local vendors, he added.
Its consolidation and renegotiation with component vendors as well as the implementation of electronic bidding and procurement systems, were also constantly being reviewed, Syed Zainal Abidin said.
To improve the next quarter's performance, he said that Proton would continue to focus on improving operational efficiencies, while simultaneously accelerating its implementation.
At the same time, Proton would continue to strengthen its performance in the domestic market while promoting export growth, he added.
"Proton's continuous efforts to improve quality have resulted in better customer satisfaction. Warranty claims for Proton's latest additions of Savvy and Satria Neo have been kept minimal at an average of 0.5 percent," Syed Zainal Abidin said.
"Our other key focus is to enhance cost competitiveness, more effective use of resources, and to introduce a bigger variety of new models over the next year or two," he said.
-- BERNAMA
Proton's net loss widens to RM58.65m in 1Q
Proton Holdings Bhd's net loss widened by 375% to RM58.65 million in the first quarter ended June 30, 2006 from a loss of RM12.35 million a year earlier due to lower sales amidst a competitive environment.
It said on Aug 29 that the wider loss was due to a decline in total car sales and the lack of a fresh line-up of car models at Proton as it transitioned to several new models starting next year.
Proton car sales for Q1 fell 27% to 32,200 units from 44,367 a year earlier.
Revenue fell 30.7% to RM1.42 billion from RM2.05 billion. At pre-tax level, its loss totalled RM95.54 million against a loss of RM7.36 million a year earlier.
Its managing director Syed Zainal Abidin Syed Mohamed Tahir said the bulk of its models had been in the market for several years. "The market is seeking something more fresh and exciting.”
He said Proton sales were affected by loan terms, interest rates and lower used car value, which required a higher top up to switch to a new car.
Syed Zainal said its promotional and marketing costs rose in its 1Q, the results of which would only be visible in the next quarter.
He added that as an early indication, Proton’s car sales last month rose 21% from the previous month.
It said registration of Proton cars with the Road Transport Department in July stood at 10,018 units compared with 8,328 units in June, while total industry volume rose by 5%.
He said it had sold 2,750 units of its latest model, Satria Neo, with another 4,000 orders in hand since its launch in June, surpassing its expectations for the niche three-door hatchback.
Syed Zainal said the 1Q losses were balanced by several initiatives since early this year, including cost cutting measures, reduction in operational expenses and streamlining of procurement.
“Our other key focus is to enhance cost competitiveness, more effective use of resources, and to introduce a bigger variety of new models over the next year or two,” he added.
posted by SEE FU at 1:45 PM
0 Comments:
Post a Comment
<< Home