BIZCHINA / General News |
Dongfeng Auto first-quarter profit rises 24% on truck sales(Bloomberg)Updated: 2007-04-29 08:41 Dongfeng Automobile Co., a Chinese partner of Nissan Motor Co., said profit increased for a third straight quarter, by 24 percent, as China's surging economy boosted demand for trucks and other commercial vehicles. Net income in the first quarter rose to 131.4 million yuan ($17 million), or 0.0657 yuan per share, from 105.9 million yuan, or 0.053 yuan per share, a year earlier, the company said today in a statement filed to the Shanghai stock exchange. Sales rose 30 percent to 2.98 billion yuan. Automakers are introducing more models and cutting prices to increase market share in China, where economic growth has enabled more people able to buy cars. Vehicle sales have more than tripled over the past five years in China, which surpassed Japan as the world's second-largest auto market last year. Dongfeng, a truckmaker based in Wuhan in central China, makes engines with Columbus, Indiana-based Cummins Inc. The company's parent is equally owned by Hong Kong-listed Dongfeng Motor Group Co. and Nissan, Japan's third-largest automaker. Dongfeng Auto said in March that 2006 vehicle sales rose 17.5 percent to 126,200 units and engine sales gained 12 percent to 96,300 units. In addition to Nissan products, the company also makes its own truck brand, Duolika. Dongfeng Auto aims to raise annual vehicle sales to 30 billion yuan by 2011, according to the company's Web site. Sales of trucks and buses may rise 7.8 percent to 2.2 million units in China this year, according to the China Association of Automobile Manufacturers. Shares of Dongfeng Auto fell 2.3 percent to 8.19 yuan in Shanghai. The stock has more than doubled this year, compared with a 70 percent gain for the Shanghai and Shenzhen 300 Index. (For more biz stories, please visit Industry Updates) |
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