Proton on the right track?

Article from Bussiness Times today:

Proton en route to better times

BANGKOK: Proton Holdings Bhd (5304) expects 2009 net profit to surpass RM200 million, driven by increased sales, operating efficiency and the launch of new models.

Managing director Datuk Syed Zainal Abidin Syed Mohd Tahir said the national carmaker was headed towards better times despite the challenging economy.

Its net profit in the first half ended September 30 2009 rose 42 per cent year-on-year to RM136.6 million, while revenue was up 11 per cent to RM3.96 billion.

In the financial year ended March 31 2009, it made a net loss of RM320 million on revenue of RM6.5 billion.

"As you can see from our results, we have achieved more than RM100 million in net profit. We expect the earnings momentum to be sustainable as demand for our existing car models like the Exora, Savvy and Saga 1.3 continues to improve," Syed Zainal Abidin told Business Times here.
He was also hopeful that revenue would exceed RM6.5 billion this year, with exports contributing up to 24 per cent.

According to Syed Zainal Abidin, Proton has a healthy order book with two months of outstanding bookings to help it achieve its targets.

"There is a lot of efficiency in the way we operate now, including plant maintenance. So there are better margins and revenue coming out of our system," he said.

Proton will be launching upgraded versions of its Waja and Perdana cars by early next year.

The Waja is headed for an enhancement programme through a collaboration with Japanese giant Mitsubishi. The same arrangement is being undertaken with another car company for the Perdana.

"Like any other car company, we have to always introduce new vehicles as well as refresh our existing models for us to be relevant to move forward. We have to look at the A, B, C and D segments and multi-purpose vehicles. Long gone are the days when a car is in the market for 11 to 12 years," Syed Zainal Abidin said.

Proton's plan is to introduce at least one new model a year.

By mid-2011, Proton will introduce the C-segment sedan, which will help widen its reach in international markets, Syed Zainal Abidin said.

Business Times had reported early last month that a clay model of the new sedan, which will be produced in Malaysia, was ready at renowned design house Italdesign-Giugiaro SpA in Turin, Italy.

Proton is also targeting to export up to 55 per cent more cars next year to boost profits. Last year, it exported 18,438 vehicles to 24 countries. It aims to export more than 26,000 units this year.

"Hopefully, next year, we will be challenged to break the 40,000-mark," Syed Zainal Abidin said.

On the home front, Proton is targeting sales of 155,000 cars this year, up by almost 10 per cent from 141,958 last year.

Besides revamping its existing models to increase car sales, Proton will expand its presence in Southeast Asia, the Middle East, China and the UK. It will also look to new markets like Australia and India.

Key takeaways that matters are new Waja,Perdana and Persona are on the stream in this order. Persona is going to get an Italian touch, whereas Waja and Perdana is a rebadged previous acquaintances.