BYD sees earnings in 1st half sink 94%
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E-mail Agencies via Shanghai Daily, August 28, 2012
BYD Co, the Chinese carmaker partly owned by Warren Buffett's Berkshire Hathaway Inc, Monday said first-half profit plunged 94 percent, dragged down by its solar cell and handset units.
Net income fell to 16.3 million yuan (US$2.6 million) in the six months ended on June 30 from 275.4 million yuan a year ago, BYD said in a statement to the Shenzhen Stock Exchange. Sales rose 0.2 percent to 22.6 billion yuan.
BYD, which supplies to mobile phone makers, including Nokia Oyj and HTC Corp, said in April that first-half profit would plunge as much as 95 percent as major customers suffered a fall in market share and Europe's debt crisis hurt demand for solar-energy cells. Vehicle deliveries fell this year at the Shenzhen-based maker as the popularity of its F3 model waned amid increased competition from foreign carmakers, including Volkswagen AG.
Net income for the nine months to the end of September is forecast to fall by 95 percent to 17.6 million yuan, the company said.
"During the third quarter of 2012, due to the impact of macro-economic uncertainties at home and abroad, China's auto demand is expected to remain weak while market competition will intensify," BYD said. Profit at its handset and solar cell units will continue to fall over the nine months.
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