First-half net profit at Australian parts maker Pacifica Group soared 107% to $A15.1m ($11.5m), doubling year-ago’s results.
According to WardsAuto.com, sales rose 10% to $437.7m ($333m), due in large part to sales to General Motors for its new GMT900 fullsize light-truck platform in North America.
Pacifica, which makes brakes and clutches under the PBR International brand for GM, Ford, Toyota and Mitsubishi Motors, reportedly said the result for its first half ended 30 June 30 was broadly in line with the company’s expectations.
Pacifica credited “the positive impact on profitability” to increased North American sales and strong growth in its AP Italia European operation, WardsAuto.com said.
“Against the background of a still-difficult automotive industry environment, we have achieved a satisfactory turnaround in our first-half earnings,” Pacifica managing director John MacKenzie was quoted saying. “We expect the emerging cost benefits from our enlarged manufacturing base in Asia to underpin our long-term competitiveness.”
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By GlobalDataThe report noted that Pacifica’s North American operations recorded an increase in sales revenue of approximately 20%, largely due to the GMT900 light-truck platform, but this was offset somewhat by a steeper-than-anticipated decline in demand for GM’s aging midsize SUVs.
Margins at both Pacifica’s Knoxville, Tennessee and Columbia, Missouri, plants improved on the back of increased sales while MacKenzie said he expected business for the GMT900 platform to remain at a similar level in the second half, the report added.
“In contrast, demand associated with GM’s mid-range SUVs has been disappointing and is likely to remain so, ahead of the launch of the (Saturn Outlook and GMC Arcadia cross/utility vehicles in December and the Buick Enclave next year),” he told WardsAuto.com, adding: “The longer-term direction of overall North American light-truck volumes in a high fuel-cost environment is uncertain.”
According to the report, Pacifica’s Australian business experienced tough trading conditions in the first half with a 35% drop in automotive revenue reflecting both the relocation of its park brake business to Thailand in 2005 and worse-than-expected softness in large passenger car sales in the domestic market.
“PBR Australia’s first half was very challenging,” MacKenzie told WardsAuto.com, adding: “Underlying demand remains a concern, but the second half will benefit from the commencement of supply of new products for Toyota’s export Camry, as well as supply to the recently launched (GM unit Holden) VE Commodore.
“The Australian business continues to contend with the repercussions of structural change in the domestic automotive industry supplier base,” he added.
WardsAuto.com noted that Pacifica will begin supplying callipers, rotors and parking brakes to Shanghai GM Automotive in early 2007, though not in large volumes.