Shah Alam, 26 May 2008 – Proton Holdings Berhad posted a third successive quarter of pre-tax profits and ended the 31 March 2008 financial year with a group pre-tax profit of RM162 million.
 
Proton Chairman Dato' Mohammed Azlan Hashim said the three successive quarters in the black point to better financial health for Proton and this can be attributed to its focus on operational improvements and its perseverance, which are beginning to show positive results.

The improved performance was achieved on the back of increased revenues to RM5.6 billion compared with RM4.9 billion in the previous year. The increased revenue generated from increased sales volume, was mainly due to the introduction of Proton’s two new models, the Persona and the Saga. The group has also benefited from its revenue diversification program with income from sale of rights for use of its intellectual property, in its export markets.
 
Given Proton’s commitment to R&D and the development of locally-owned intellectual property, Dato’ Mohammed Azlan further underlined that Proton has met the stringent requirements stipulated under the Government’s announced National Automotive Policy (NAP). In this regard, Proton had qualified to enjoy the benefits of the facilities offered under the NAP. Facilities available under the NAP are available for any automotive manufacturer in recognition of efforts to increase the level of intellectual property created within the industry.

With regards to exports, Dato’ Mohammed Azlan said that exports performance in the fourth quarter showed significant improvement. Over 7,000 units were shipped compared to just over 1,700 units in the previous quarter. Total exports for the financial year is approximately 17,300 units.
 
Managing Director Dato' Syed Zainal Abidin Syed Mohamed Tahir said the Persona, with its competitive pricing, stylish design and best-in-class attributes for ride and handling, cabin space and luggage space, has received 41,000 bookings since its launch in August 2007. Bookings for the Saga, Proron's most compelling value for money offer to-date, have exceeded 55,000 since its launch in January 2008. The contributions of the Saga to sales volumes and revenues will be fully reflected in the current financial year.

Emphasis on the elevation of the automotive eco-system saw the strengthening of the vendor base and dealer network. These rationalisation initiatives were enabled with vendors and dealers to deliver improved quality of service and be more competitive.

Proton will continue to strengthen itself in all aspects – operational, financial and corporate – to better equip itself in the years ahead. It will adopt a three-pronged thrust namely development of market-driven products, focus on high growth regional markets and a production strategy that achieves economies of scale.

Going forward, Dato' Mohammed Azlan said the launch of an MPV in early 2009 will see expansion of its product portfolio and more importantly, its entry into a growing automobile segment. In terms of volume, the target of doubling its total sales volume to 300,000 units by 2010.

"We are all excited about our future direction and plans, now that we have laid the foundations for future growth. The various initiatives and adjustments to clean up all known legacy issues is beginning to show results as evident by Proton already delivering on some of its promises with regard to product variety, product quality, export improvement, revenue diversification and efficiency improvement.