General Motors’ Holden unit said 2002 profit fell 10% because of pension payments and investment write-offs according to Bloomberg News.

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Melbourne-based Holden’s net income for calendar 2002 fell to $A257.4 million ($US165 million) from $A285 million in 2001 while sales rose 7% to a record $A5.9 billion, Bloomberg News said, citing a company statement.

The news agency said Holden was Australia’s largest car maker for the second straight year in 2002, with a 21.6% market share, as the nation’s sales rose 6.7% to a record 824,309. Australia’s main vehicle industry group earlier this month raised its sales forecast for 2003 by 3%, estimating a record 850,000 vehicles will be sold.

“The recent drop in local consumer sentiment is likely to rebound with the end of conflict in Iraq,” Holden’s chairman and managing director Peter Hanenberger said in the statement cited by Bloomberg News. “We may well see another record year for vehicle sales because the cost of money remains low and vehicle affordability remains high.”

According to the report, Holden said 18.4%, or $A1.1 billion, of its revenue in 2002 came from sales overseas, compared with 20.8%, or $A1.2 billion, in 2001. The carmaker exported 31,737 units, the highest since 1973. It wants to boost overseas car sales to 70,000 units by 2008, the company reportedly said.

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Bloomberg News said Holden increased capital spending to $A507 million from $A221 million in 2001. The carmaker has said it plans to invest $A2 billion between 2002 and 2006 to expand plants in Elizabeth, South Australia, and Fishermans Bend, Victoria. A large chunk of the investment will probably be spent on upgrading its Commodore model.