Shah Alam, 27 November 2008 - Proton Holdings Berhad continues to maintain its positive financial performance, posting a consolidated profit before tax of RM115 million year-to-date ending 30 September 2008 compared to the loss before tax of RM42 million in the corresponding period in the last financial year.

For the second quarter, the Group registered a profit before tax of RM57 million compared to the RM59 million recorded in the preceding quarter. The results were positively impacted by increase in domestic sales volume and reversal of allowance for doubtful debt, offset by provisions for anticipated raw material and components price increase and higher overheads.

Compared to the corresponding quarter in the last financial year, increases in revenue, RM3.55 billion against RM2.45 billion and sales volume, 44,677 units against 39,888 units with net profit after tax of RM95.8 million against net loss of RM43.2 million, is observed.
 
Proton Chairman Dato' Mohammed Azlan Hashim says the result is the fifth consecutive quarter of profitability, demonstrates the company’s ability to sustain its financial performance despite the increasingly challenging industry environment and proves that its strategy of having “the right car, at the right price and at the right time” is working well.

“Nonetheless, Proton will continue to remain focused on the tasks ahead and must remain vigilant of the various challenges facing the automotive industry,” Dato’ Mohammed Azlan added.

“With this encouraging result, the Board of Directors is pleased to declare an interim dividend of 5 sen per share”.

“The dedication our management and employees coupled with the continuous support from vendors, dealers, customers and the Government has been invaluable and rewarding,” added Dato' Mohammed Azlan.

"Notwithstanding the challenges encountered, Proton remains resilient. This resilience and perseverance, together with the initiatives implemented over the last three and a half years have put us in a better position to compete more effectively," he continues.

"We are realistic that moving forward, the operating environment will be very challenging. Evidence of this can already be seen in the global automotive industry. We will continue with our efforts to minimize costs and improve efficiency in our operations, while investing for our future. In this regard, the Board and Management will continue to review its operational structures to ensure the Group is well placed to address these challenges,” adds Dato' Mohammed Azlan.

“On another note, the Board is pleased to announce the renewal of the contract for its Managing Director, Dato’ Haji Syed Zainal Abidin Syed Mohamed Tahir” said Dato’ Mohammed Azlan.
 
Proton Managing Director Dato’ Haji Syed Zainal Abidin Syed Mohamed Tahir said, “For exports, we will continue to focus on our strategy, concentrating on high-growth regional markets such as Asean, China, India and the Middle East North Africa (MENA) for economies of scale.”

“We have just launched the Persona in the Middle East and GCC markets namely Saudi, Egypt and Oman this month while Qatar and Bahrain will receive the model next month. Earlier we have introduced the Persona in Singapore and Indonesia in July, and the Persona CNG in Thailand in October. We have also launched Saga in Brunei in October” says Dato’ Syed Zainal Abidin.

As of October 2008, Proton’s market share is 33.3% with a total of 122,351 units of registered cars in the country since January. The domestic bookings for Persona have now reached 59,028 units while Saga 91,127 units.