Proton Returns To Profit in June Quarter With Some Green Shoots of Recovery

BRISTOL, UNITED KINGDOM – September 2, 2009: Proton Holdings Bhd has reported a pre-tax profit of close to $AUD 25 million (RM 64.379 million) for the first quarter of the Malaysian financial year, up 9.7 per cent on the same quarter last year.

The result for the quarter ending June 30 this year was achieved on an eight percent increase in revenue up from RM 1.71 billion (approx $AUD 579 million) to RM1.85 billion (approx $AUD 627 million).

Proton says the improved performance was the result of a better product mix, which also helped to minimise the impact of a decline in Malaysian car sales during the period.

Total industry volume (TIV) in Malaysia was down almost 11 percent during the period while Proton sales were down just 2 percent.

The strong sales from the newly launched Proton Exora people mover helped the group to increase its market share to 31 percent in Malaysia in June.

For the six-months to June 30, Proton sold 69,977 units, which accounted for 27 per cent of TIV.

Proton's chairman Dato Nadzmi Salleh said the results show the group's efforts to enter a new segment of the car market have produced the desired outcome.

Proton's revenue has also grown despite the 2 percent decline in sales volume against 39,888 units sold in the same quarter last year.

The Chairman said Proton's first quarter performance was also an improvement on its before tax loss of RM 374 million (approx $AUD 126 million), in the preceding quarter which included write-downs totalling RM 360 million (approx $AUD 122 million).

Proton's managing director Dato' Syed Zainal said there have been positive signs of recovery in the global automotive industry as consumer demand stabilised and improved.

"Our prospect for acquiring more domestic sales volume and market share is encouraging, driven largely by the sales of Exora," he said.

"Internationally, the group will focus on introducing the Exora in the Asean region which will further increase its sales volume," Dato' Syed Zainal added.

Despite the improved sentiment, he said Proton was still cautious of the sustainability of the global economic recovery and would continue to expand into key markets, improve quality and intensify branding as well as invest in research and development for products refreshers and new models.