Proton 2Q earnings slump 76% to RM15.55m

KUALA LUMPUR (Nov 29): PROTON HOLDINGS BHD []’s earnings fell 76.4% to RM15.55 million in the quarter ended Sept 30, 2011 from RM65.92 million a year ago due to higher expenses incurred by the Lotus Group International Ltd.

It said on Tuesday that revenue was a marginal 1% higher at RM2.263 billion from RM2.240 billion a year ago while earnings per share were 2.8 sen compared with 12 sen.

However, the national car maker said the group posted higher pre-tax profit of Rm35 million compared to RM12 million in the first quarter.

“In the current quarter, the group experienced a higher total sales volume as compared to the immediate preceding quarter sale volume, driven by stronger demand for Proton’s higher margin models, namely the Exora and Inspira,” it said.

For the six-month period, its net profit fell 86.6% to RM20.11 million from RM150.60 million while revenue slipped 0.7% to RM4.496 billion from RM4.530 billion.

Proton said pre-tax profit for the first six months of RM47 million was lower than the RM185 million a year ago.

“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 the higher expenses at Lotus Group were partially offset by an increase in Proton’s domestic sales volume, which was 2% higher on-year.