Proton Holdings reported a net loss of MYR60.1m (US$19.7m) in the third quarter (to December 2010), compared with a profit of MYR79.7m a year earlier, prompting a fall in its share price to a 14-month low on the Kuala Lumpur stock exchange yesterday.
The Malaysian carmaker cited higher marketing expenditure and one-off restructuring costs relating to its Lotus Group International subsidiary as the main reasons for the losses. But revenues also declined, by 9% to RM1.83bn, reflecting lower vehicle sales – in a booming domestic vehicle market.
Restructuring costs included provisions for new product development, management reorganisation and dealer network restructuring. Higher marketing expenditure mainly included brand strengthening, with a much higher profile at many international motor shows.
In the nine months to the end of December, net profit fell by over 58% to MYR90.5m, from MYR216.3m a year earlier, while sales rose by 6.5% to MYR6.36bn.