Proton Posts 2Q Loss
December 2, 2005
Filed under Uncategorized
Malaysia's Proton Holdings Bhd reported a loss of 154.3 million ringgit ($40.8 million) for its second quarter ended September 30, compared with a profit of 199 million ringgit a year earlier, and is expected to announce further losses through the fourth quarter as it continues to incur debt stemming from its acquisition of a majority of MV Agusta in 2004.
Proton, which also owns car-maker Lotus Group International, announced a $ 3.3 million dollar net loss in its first quarter ended June 30. It was the company's first quarterly loss since March 2004.
Proton purchased a 58% stake in MV Agusta Motor SpA in October 2004 for an estimated 70 million euro by underwriting the Italian company's loan from Citibank. The new financing saved MV Agusta when a court in Italy subsequently dropped bankruptcy proceedings against it.