Published October 31, 2008

Proton back in the black with RM162m profit

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(KUALA LUMPUR) Proton recorded RM162.2 million (S$68 million) profit for the financial year ended March 31, 2008, a sharp reversal from the previous year's massive losses, the Dewan Rakyat (Parliament) was told yesterday.

Deputy Prime Minister Najib Tun Razak said the profit was the result of the more effective internal management changes and business initiatives taken that would yield long-term positive impact.

'Proton's real loss in the financial year ended March 31, 2007 was RM618.1 million, primarily caused by a 40 per cent drop in car sales to 110,358 units in the 2006/2007 financial year from 183,824 units in the previous financial year.

'The drop was due to the very competitive market environment, and low value for used cars affected prospects of buying new cars,' said Mr Najib, who is also finance minister, in his written reply to opposition MP Wee Choo Keong.

He said the special subsidy or incentives received by Proton were not something exclusive for the national car manufacturer alone.

Similar incentives were also given to all assemblers or manufacturers of completely-knocked-down cars, he said. -- Bernama