Ford's Chinese Investment Posts 77% Profit Loss for First Half 1996

08/27/96

Reuters reported that Jianling Motors Corporation, a Chinese truckmaker, posted a 77% drop in post-tax profits in the first half of 1996. Ford owns a 20% stake in the truckmaker.

Jiangling Motors announced the drop in Saturday's edition of the China Securities newspaper. The company's statement said net profit in the period was 3.385 million yuan, down from 14.956 million in the same 1995 period.

Turnover fell to 937.891 million yuan from 1.215 billion, while net assets per share were 1.88 yuan, unchanged, and earnings per share fell to 0.005 yuan from 0.02 yuan, the statement said.

The company said it produced 8,333 vehicles and sold 9,018 in the first half of 1996, but did not explain the difference. It blamed the drop in profits on a weak vehicle market and said as its engine plant had only just started trial production. The company says its results will not improve in the short-term.

Paul Dever -- The Auto Channel