Proton has posted it’s fourth straight quarterly loss amounting to RM11.8 million (pre-tax) for the first three months of 2007, compared to a profit of RM129.9 million ringgit during the first three months of 2006.
For the full fiscal year of 2006, Proton has lost a total of RM619.9 million ringgit (pre-tax), compared to a net profit of RM46.7 million ringgit during the 2005 period. Revenue for 2006 dropped 37% to RM4.92 billion.
Proton says this is because of weak sales, which plummetted 40% down from 183,824 units to 110,358 units, however it has measures in place to try to improve sales with two more new models to be launched this year. Proton says these two cars are potentially high volume cars, which will give Proton it’s much-needed sales boost.
In the exports department, Proton exported 20,595 during the 2006 financial year, almost double from the 12,526 units in the previous financial year.
“They have to turn around. They cannot be going on making losses. They have to do whatever they think is necessary. I have decided, since Volkswagen is not interested in the proposal that Proton wants in terms of equity, Proton needs to talk to other people,” commented our Prime Minister Datuk Seri Abdullah Ahmad Badawi, giving more weight to the previous news that Volkswagen has decided to locate it’s plant in Indonesia.
Speaking of Indonesia, Proton Holdings Bhd and Tracoma Holdings Bhd has extended their acquisition exercise, giving more time for Proton to acquire PT Proton Tracoma Motors at RM340 million.