Good sign for Chang'an - first profit grwth in 7 qtrs
Changan Auto Posts First Profit Growth in 7 Quarters
April 15 (Bloomberg) -- Chongqing Changan Automobile Co., a Chinese partner of Ford Motor Co. and Suzuki Motor Corp., had its first profit growth in seven quarters after its sales of minivans and passenger cars increased.
Net income rose 8.6 percent to 76 million yuan ($9.5 million) in the quarter ending Dec. 31, from 70 million yuan a year earlier, according to calculations by Bloomberg News. Sales rose to 6 billion yuan from 5 billion yuan a year earlier. The figures were derived from the company's full-year earnings, which were provided to the Shenzhen stock exchange today using China's accounting standards.
Changan, a publicly traded unit of the country's fourth biggest automaker, has benefited from rising demand for smaller cars in China, which is being driven by higher gasoline prices and government policies.
Sales of cars with engines of less than 1 liter rose 76 percent last year to 325,402 units, according to the China Association of Automobile Manufacturers.
The Chinese government has increased gasoline prices four times within a year. Beijing's city government on April 1 lifted an eight-year ban against small cars, such as the 0.8 liter- engine Changan Auto, using main roads in the capital.
Changan Automobile Group Co., the parent of Chongqing Changan, aims to raise sales 20 percent this year to 750,000 units by selling more Focus and Swift cars with partners Ford and Suzuki.
http://www.bloomberg.com/apps/news?pid=10000080&sid=a_4HNzKpxkHU&refer=asia
Changan Auto Posts First Profit Growth in 7 Quarters
April 15 (Bloomberg) -- Chongqing Changan Automobile Co., a Chinese partner of Ford Motor Co. and Suzuki Motor Corp., had its first profit growth in seven quarters after its sales of minivans and passenger cars increased.
Net income rose 8.6 percent to 76 million yuan ($9.5 million) in the quarter ending Dec. 31, from 70 million yuan a year earlier, according to calculations by Bloomberg News. Sales rose to 6 billion yuan from 5 billion yuan a year earlier. The figures were derived from the company's full-year earnings, which were provided to the Shenzhen stock exchange today using China's accounting standards.
Changan, a publicly traded unit of the country's fourth biggest automaker, has benefited from rising demand for smaller cars in China, which is being driven by higher gasoline prices and government policies.
Sales of cars with engines of less than 1 liter rose 76 percent last year to 325,402 units, according to the China Association of Automobile Manufacturers.
The Chinese government has increased gasoline prices four times within a year. Beijing's city government on April 1 lifted an eight-year ban against small cars, such as the 0.8 liter- engine Changan Auto, using main roads in the capital.
Changan Automobile Group Co., the parent of Chongqing Changan, aims to raise sales 20 percent this year to 750,000 units by selling more Focus and Swift cars with partners Ford and Suzuki.
http://www.bloomberg.com/apps/news?pid=10000080&sid=a_4HNzKpxkHU&refer=asia