proton loss RM608.2 million first 9 months!!

[GTR2579]

Proton posts RM281.5m Q3 loss
February 28 2007

PROTON Holdings Bhd yesterday reported a third-quarter pre-tax loss of RM281.5 million, its third straight quarterly loss, amid an overall weak car market which dropped 11 per cent in 2006.

The results were generally expected by analysts, who believe a better performance should be coming in the coming years as Proton ties up with a global carmaker.
The national carmaker made a profit of RM86.5 million in the same period a year earlier. Sales for the third quarter ended December 2006 eased to RM962.27 million from RM2.15 billion previously.


"The group's operating conditions will remain difficult due to the higher component costs as experienced by the industry and margins will come under pressure from competition," Proton said in its announcement yesterday.


The company plans to introduce new models this year to improve sales.
It will also continue to focus on export growth, quality improvement, improvement of dealer management, implementation of measures to mitigate the impact of a more liberalised automotive industry, higher costs of raw materials as well as currency fluctuation.


For the first nine months, Proton made a pre-tax loss of RM608.2 million compared to RM72.9 million pre-tax loss previously.


Provision for claims in respect to prior years project development costs, additional expenditure required for promotions and higher cost of raw materials had impacted its profitability, Proton said.

source at
Business Times
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Wahlou!!...270 days total loss RM608,200,000

24 hours loss RM2.2million
1 hour loss RM93,600
1 minute loss RM1,560

Good one..do proton ceo should resign? proton still boleh??

 

[hobcai]

better gulung tikar

dont waste our $$ ro support them

 

[ju onn]

I believe this are few thing what proton CEO have in mind right now..

"fire the excessive staff at proton factory except my secretary!! er.. my be not! Rise the price of all proton car!! er.. how about decrease the quality of each car proton produce?
... my god, i m a dead meat!!"

 

[g88]

If gulong tikar Proton part price will skyhigh ar ?? Got new said General Motor might be interested take over ler...

 

[drMpower]

third class vendors. fire them all. give contracts only to worthy ones.

wonder what will these critics say at the time Proton eventually become as good as Mercedes or BMW?

I'm not as patriotic as William Wallace either, but I'm giving Proton as much time as it needs. But, time is running out my fella Proton.

surely my hard-earn RM100K will point straight to Alfa Romeos or Honda Civics when AFTA comes in 2008, if Proton stays like this.

 

[rollakid]

i thought general motors also keep on loosing money only? and if that happens can we have any small block chevy? lol..

 

[mag9556]

Even Wolkswagon wanna to buy 51% of proton share but proton dun want...
Yesterday pass by proton sales office..
CANT IMAGINE!!! Nowdayz Perdana only RM 85000!!! NEW CAR!!!...

 

[zephyr3d]

FYI... Chevys in asian market are actually rebadged Daewoo... :P

 

[Zeroed]

The CEO in Proton is actually a brilliant person. He's the one who turned the tides for Perodua some years back, no? If it wasnt for him, a partnership with VW probably wouldnt have been possible either.

Its just that, in a big company it doesnt take just a CEO change to turn negative into positive...

 

[zan]

ok, when somebody do business...there is only one target - profit.

even a goreng pisang seller can suceed to doing that...

pisang 10 sen each, divide by half ( 5 sen each)
other cost whenever a goreng pisang is cooked
1) water - 1 sen
2) flour - 1 sen
3) cooking oil - 1 sen
4) gas - 1 sen

total cost for each goreng pisang - 9 sen
selling price - 25 sen.

profit making = 16 sen @ 170%

proton should learn how to business from goreng pisang sellers.

 

[infernaL]

then what u expect them to be like petronas ar ? ahahahhahah

 

[zan]

no, at least make rm1,000 net profit per car enuff laa...

what's the point of doing business when there's no profit? commit suicide la better isnt it?

 

[na_power]

proton is bad already, must fired all the staff and change all the sub-contractor..

 

[boggysv]

Heh, I guess most malaysians are finally sucking it up to pay a little more for japanese cars. With the budget of a brand new proton, I'd gladly buy a used continental or a low mileage japanese car though...maybe even a produa.

Feb. 27 (Bloomberg) -- Proton Holdings Bhd., the Malaysian carmaker in talks to sell a stake to General Motors Corp., reported a third straight quarterly loss as sales slumped to the lowest in at least seven years.

The fiscal third-quarter loss was 281.5 million ringgit ($81 million) in the period ended Dec. 31, compared with a profit of 86.5 million ringgit a year earlier, Proton said today in a statement. Sales fell 55 percent to 962.3 million ringgit.

State-run Proton, set up in 1983 by former Prime Minister Mahathir Mohamad as an icon of Malaysian manufacturing, blamed discounts from rivals as total losses this financial year climbed to $169 million. The company, which has held talks with Volkswagen AG and PSA Peugeot Citroen about an alliance, may take years to return to profit, analyst Chong Lee Len said.

``Even if a partner emerged tomorrow, it's going to take at least eight quarters to turn around the business,'' said Chong, who has a ``fully valued'' rating for Proton stock at Hwang-DBS Vickers Research Sdn. in Kuala Lumpur. ``General Motors has enough issues of its own. It'll probably be Volkswagen or Peugeot.''

General Motors, which reported losses in the second and third quarters of 2006, said on Feb. 15 discussions with Proton were in the early stages. Volkswagen, Europe's largest carmaker, declined to comment on the status of any talks, while Peugeot, Europe's second-biggest, said on Jan. 26 a partnership with Proton isn't imminent.

Cost Cuts

An alliance with an ``established global player'' would help cut development and production costs, Shah Alam-based Proton said in its statement. The government has said it plans to seal an agreement with a partner before April.

``The next 12 months will see a better Proton,'' Managing Director Syed Zainal Abidin Syed Mohamed Tahir said in the statement.

Malaysia's government, which controls Proton through a 43 percent stake held by investment arm Khazanah Nasional Bhd., has been seeking a partner for Proton since an alliance with Mitsubishi Motors Corp. ended in 2004. Initial talks with Volkswagen collapsed in January after the parties disagreed on Proton's ownership.

Vehicle sales in Malaysia, the largest passenger car market in Southeast Asia, fell 15 percent in January, as higher lending rates and lower consumer confidence deterred buyers, the Malaysian Automotive Association said on Feb. 21. It was the 12th consecutive monthly decline from a year earlier.

Waning Demand

Sales of passenger cars and commercial vehicles in January dropped to 35,047 from 41,207 a year earlier and a lack of confidence among buyers will also affect February sales, the association said. Malaysia's central bank raised its key interest rate three times from November 2005 to April last year.

``Car sales have been so weak,'' Pankaj Kumar, who manages $427 million for Kurnia Insurans Bhd. in Petaling Jaya, near Kuala Lumpur, said before the announcement. Still, ``the share price has been holding up. Some expectations are being built in.''

Shares of Proton have gained 11 percent this year, compared with a 13 percent rise by the benchmark Kuala Lumpur Composite Index. The stock closed today at 7.30 ringgit, valuing the carmaker at 4 billion ringgit.

Perusahaan Otomobil Kedua Nasional Sdn., or Perodua, overtook Proton as the country's largest passenger carmaker last year with a 41.6 percent market share, according to the Malaysian Automotive Association. Proton's market share fell to 32 percent in 2006 from 40 percent in 2005.

Savvy, Waja

While Proton last month rolled out variants of its Savvy and Waja models, it hasn't been quick enough to introduce brand new cars, analysts have said. Proton last introduced a new car, the Satria Neo, in June.

Proton will collapse unless it finds an international partner, and needs fresh leadership to return to profit, Mahathir has said. The choice of partner will determine whether Proton can make money again, Zainal said on Jan. 19.

Still, Malaysia's vehicle sales may increase 1.9 percent in 2007 after a decline last year, the Malaysian Automotive Association said in January.

Sales of cars, vans and sport-utility vehicles may rise to 500,000 units this year from 490,768 in 2006, the group said. Vehicle sales fell 11 percent in 2006, the first decline in three years.

 

[EcstacyElmo]

i'd rather get a classic car and do it up when i get a job, satisfaction in seeing it running
wouldn't give a shit if proton folded
and AFTA 2008 = cheaper foreign cars? i hardly think so la, mbe they gona come out with another bunch of taxes to raise the price again so that proton looks like a bargain as usual

 

[Edward Chew]

Then they will ask for 10 years more protection from MAL.
PRO, the MARUAH(Proud) of MAL..., has become a MALU-AH of MAL. :Not_Impressed:

 

[keithkeat]

fuiyoooo
after 9 mth loss 608.2mil still able to loss....not bad also......pls keep the track of lossing.......glad to see......

 

[satria_95]

close shop. close shop. close shop. hehehe

 

[rollakid]

might be better if proton start rebadging foreign cars.. save money on their overpriced inefficient R&D

 

[Lennon]

Guys, your prayers have been answered!!!!! IMO, it's Mahathir policy and the death of Tan Sri Yahya that contribute to the downfall of their 'SON'......... Tan Sri resembles the Glory & Golden Age of Proton, but Mahathir too manja his 'SON'....