PROTON Holdings Berhad registered a profit before tax of RM186 million in the first half of its 2010/11 financial year benefitting from the improved market sentiments and conditions which had accounted for a 13% increase in its vehicle sales. The growing demand for Proton vehicles were significantly contributed by three core models; the Saga, Persona and Exora.
Cumulative Group profit before taxation rose to RM186 million compared to the profit of RM165 million posted in the corresponding period last year as a result of higher domestic sales and improved profit margins. The higher vehicle sales were also attributed to a growth of 14% in the total industry volume (TIV) in the first nine months of 2010 according to the Malaysian Automotive Association (MAA). The national car company sold a total of 40,205 vehicles in Q2 2010/11 compared to 42,520 units in the corresponding period last year.
Group profit before taxation at RM81 million for the individual quarter however, was lower than the RM105 million recorded in the immediate preceding quarter. This was attributable to a oneoff provision for stock obsolescence, and branding and restructuring costs incurred by Group Lotus for the business turnaround exercise. This involved the launching of a new brand identity for Group Lotus and culminated with the worldwide unveiling of five brand new Lotus models at the Paris Motor Show in September.
Moving forward, the MAA expects that the upward trend for vehicle sales is unlikely to be as strong for the rest of the calendar year 2010 due to seasonal slowdown in purchasing towards the calendar year end.
"PROTON remains confident that sales will continue to grow, on the strength of the public's positive response towards the recently launched Inspira. This is envisaged to further improve the Group's profitability and our market share in the domestic market," said PROTON Holdings Berhad Chairman Dato' Sri Mohd. Nadzmi Mohd. Salleh.
"We are also encouraged by the overwhelming response received for the Inspira. As of yesterday, PROTON had already received a total of 3,400 bookings for the Inspira since it was first opened for booking on 14th of October," said Dato' Sri Mohd. Nadzmi.
He also added that PROTON's performance going forward will also be backed by the introduction of refreshers and variants. He further explained that the Group will also focus on expanding into selected key markets, intensifying on branding and marketing initiatives, and continuing to invest in development activities and the acquisition of new technology.
Meanwhile, PROTON's Group Managing Director Dato' Haji Syed Zainal Abidin Syed Mohamed Tahir said the Company intends to take an early advantage of and capitalize on the Government's initiative to make Malaysia a regional hub for hybrid, electric and environmentallyfriendly vehicles. One of the key announcements in Budget 2011 was in granting full exemption on the import and excise duties for hybrid cars below 2,000cc which includes electric cars, hybrid motorcycles and electric motorcycles until December 31, 2011.
"These exemptions would serve as an attractive incentive for local companies such as PROTON to manufacture such vehicles in Malaysia. This will not only extend significant savings to car owners in terms of lower fuel costs but assists PROTON in the forefront of promoting Malaysia as a regional hub for the development and manufacturing of green technology vehicles," said Dato' Haji Syed Zainal Abidin.
PROTON is already in the final phase of testing and validating a Proton Exora Extended Range Electric Vehicle which is targeted for commercial production as early as 2011. The Proton Exora Extended Range Electric Vehicle had also earlier this month won the ‘Best Range Extender Electric Vehicle' category in the inaugural Brighton to London Future Car Challenge organized by the prestigious Royal Automobile Club in the United Kingdom. The challenge is a motoring contest for Electric, Hybrid, and Low-Emission Internal Combustion Engine passenger cars. Winners were based on cars with the lowest energy consumption on the 91.2 km drive from Brighton to London.
Going against a more prominent name in the global green automotive industry, the Exora Extended Range Electric Vehicle emerged as the winner in its category after consuming only 2.2 litres of petrol during the entire Challenge. The win had benchmarked PROTON against the best in the industry. Participation in the event was also an opportunity for PROTON to demonstrate its technological capabilities and commitment in developing highly efficient fuel vehicles that are also environmentally friendly.
FINANCIAL HIGHLIGHTS Q2 (AS AT 30 SEPTEMBER, 2010)
| | 2010/2011
(30/09/2010)
RM'000 | 2010/2011
(30/09/2009)
RM'000 |
| Profit before taxation (cumulative period) | 185,914 | 165,031 |
| Profit before taxation (individual period) | 81,265 | 100,652 |
| Revenue (Q2) (Cumulative period) | 4,530,396 | 3,956,108 |
| Revenue (Q2) (invidual period) | 2,240,509 | 2,104,090 |
| Cash, bank balances & deposits (unaudited) | 1,315,035 | 1,500,926 |
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