China's Dongfeng Auto 2005 net profit down 15.45 pct yr-on-yr on higher costs
Dongfeng Motor Corp, said its 2005 net profit fell 15.45 pct year-on-year to 393.88 mln yuan due to higher costs,
SHANGHAI (AFX) - Dongfeng Automobile Co Ltd (SHA 600006), the listed unit of China's third-largest automaker, Dongfeng Motor Corp, said its 2005 net profit fell 15.45 pct year-on-year to 393.88 mln yuan due to higher costs, intense competition and government policies.
Earnings per share fell to 0.197 yuan, against 0.233 yuan a year earlier.
The company, which makes commercial light trucks, diesel engines and castings, said core revenue rose 44.28 pct to 8.80 bln yuan in 2005.
However, core business costs in the period rose 50.51 pct year-on-year to 7.48 bln yuan, and operating costs surged 107.39 pct to 524.67 mln yuan.
The company did not give a reason for its spiralling costs.
Sales of diesel engines produced by its 50-50 joint venture with US-based Cummins Inc in 2005 stood at 85,960 units, down 29.59 pct year-on-year, on falling domestic heavy truck sales and a fall in procurement by the company's largest buyer, Dongfeng Commercial Automobile Co.
Sales of automobiles last year rose 31.44 pct year-on-year to 107,413 units.
The company did not provide an earning forecast for 2006 but said that oversupply, higher material costs and lower growth in the auto industry will have an adverse impact on its business.
Total assets stood at 10.19 bln yuan as of the end of September, up 43.27 pct year-on-year.
The company said it will pay a pre-tax dividend per share of 0.8 yuan.
Dongfeng Automobile also has a 50-50 joint venture with Nissan Motor Co.
Earnings per share fell to 0.197 yuan, against 0.233 yuan a year earlier.
The company, which makes commercial light trucks, diesel engines and castings, said core revenue rose 44.28 pct to 8.80 bln yuan in 2005.
However, core business costs in the period rose 50.51 pct year-on-year to 7.48 bln yuan, and operating costs surged 107.39 pct to 524.67 mln yuan.
The company did not give a reason for its spiralling costs.
Sales of diesel engines produced by its 50-50 joint venture with US-based Cummins Inc in 2005 stood at 85,960 units, down 29.59 pct year-on-year, on falling domestic heavy truck sales and a fall in procurement by the company's largest buyer, Dongfeng Commercial Automobile Co.
Sales of automobiles last year rose 31.44 pct year-on-year to 107,413 units.
The company did not provide an earning forecast for 2006 but said that oversupply, higher material costs and lower growth in the auto industry will have an adverse impact on its business.
Total assets stood at 10.19 bln yuan as of the end of September, up 43.27 pct year-on-year.
The company said it will pay a pre-tax dividend per share of 0.8 yuan.
Dongfeng Automobile also has a 50-50 joint venture with Nissan Motor Co.
