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DESPITE Proton’s announcement of a RM236 million profit for the previous quarter, a closer look at the figures reveal, once again, a gloomy picture for the struggling car maker.
The figure includes a tax benefit of RM43 million.
Proton also received a “research and development” grant from the government of RM194 million which, combined with the tax benefit, means that it made zero profit.
And all of this on the back of a 37 per cent increase in sales over the previous year.
Proton’s disappointing results show that the company, despite everything that it has done by way of cost cutting, releasing new models, refreshing old models and introducing other customer enhancement changes, is still making an operating loss.
Where can Proton go from here?
Unless the company can link up with a large foreign car manufacturer and fully exploit its own underutilised manufacturing capacity, the company is heading for a slow demise.
DR IAN MACKECHNIE, Kuala Lumpur
Source: NST – May 29, 2008
One response to “Proton’s Prospects: Profit figures give misleading picture”
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motorhead
May 29th, 2008 at 5:00 pm
proton’s grant from the govt is for its expenditure of almost RM600 million on R&D last year. For meeting certain requirements under the NAP, they were given this grant. likewise, any automotive company, including foreign company’s have the right to apply for this grant and not just national car companies.
Isn’t it strange, that for a company supposedly heading for a slow demise they be spending so much on R&D.
after years of abuse, I personally think proton has done wonders over the last 2 years since the new mgment took charge. the bookings of persona and saga together has almost hit 100,000 units and in a space of less than 1 year. if thats not a significant achievement for a company struggling for its life only as recently as a year ago, thats not bad at all.
somehow, it seems that Dr. Ian Mackechnie has not taken all the facts into consideration and the possible long term improvements from proton, with a new MPV on the way, and also gains in its export markets in china and iran.