Dongfeng Motor Profit Rises 27% on China Car Sales
2008-08-28 Source：english.chinabuses.com
Dongfeng Motor Group Co., China's third-largest automaker, said first-half profit rose 27 percent as the country's economic growth spurred demand for its own- brand trucks and the cars it makes with Nissan Motor Co.
Net income climbed to 2.47 billion yuan ($361 million), 0.29 yuan a share, from 1.95 billion yuan, or 0.23 yuan, a year earlier, the company said in a Hong Kong stock exchange statement today. Excluding a year-earlier tax gain, profit surged 57 percent, it added.
Dongfeng's passenger-car venture with Nissan boosted sales 24 percent in the period, outpacing the overall market, as the Japanese automaker increased investments in China to counter slumping demand in the U.S. and Japan. Dongfeng's truckmaking arm also sold more vehicles as China's 10 percent growth rate fueled demand from transport companies and builders.
"Dongfeng's comprehensive product line-up, ranging from trucks to compact cars, helps it offset some of the risks caused by market fluctuations,'' said Vivien Chan, an analyst at SinoPac Securities Asia Ltd. in Hong Kong. "Still, Dongfeng and other automakers will face tougher challenges in the second half after countrywide auto sales growth slumped in June and July.''
Dongfeng's commercial-vehicle sales rose 37 percent to 220,800, giving it a 14 percent market share. The company makes own-brand and Nissan trucks through Shanghai-listed Dongfeng Automobile Co.
China's industrywide vehicle sales rose 19 percent in the first half of this year to 5.18 million, with passenger-car sales expanding 17 percent to 3.61 million, according to the China Association of Automobile Manufacturers.
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