Tan Chong records pre-tax profit drop due to production cut backs in the first & second quarter.Read the full news from Bernama below.
TAN CHONG RECORDS PRE-TAX PROFIT DROP IN THIRD QUARTER.
KUALA LUMPUR, Nov 18 — Tan Chong Motor Holdings Bhd reported that pre-tax for its third quarter ended Sept 30, 2009, declined to RM44 million from RM115.7 million in the same period last year.
Revenue dropped to RM745.8 million from RM1.002 billion previously, said the group which is involved in the assembly and distribution of passenger and commercial vehicles.
“Production cutbacks in the first quarter and second quarter 2009, followed by a global shortage of inventory in third quarter, compounded the negative variance,” Tan Chong said in a filing to Bursa Malaysia Wednesday.
“From a high base of comparison against the strongest quarter in 2008, net income after taxes in third quarter 2009 appears to be down 63.3 per cent year-on-year,” it said.
Tan Chong said besides an order backlog carried forward from September 2009, the group also expects its fourth quarter to benefit from a stronger ringgit.
“We are continuously looking at structural improvements to bring down costs and broaden our target market. Investments in new products and capacity, both software and hardware, have begun in earnest,” it said.