Mexican Media Brands
Geely’s Net Profit Plunges 40%
China’s Geely Automobile Holding Co. says its net profit in the first half of 2019 skidded 40%, as unit sales and revenue suffered double-digit declines.
#economics
Share
China’s Geely Automobile Holding Co. says its net profit in the first half of 2019 skidded 40%, as unit sales and revenue suffered double-digit declines.
The company’s net profit in January-June dropped to 4 billion yuan ($568 million) from 6.7 billion yuan in the same period last year. Unit sales shrank 15% to 651,700 vehicles. Revenue fell 11% to 47.6 billion yuan ($6.7 billion).
Geely notes that, like other carmakers in China, the company took a profit hit as it helped dealers reduce their bloated stockpile of new cars. The company notes that China’s abrupt and selective rollout of tougher new emission standards in July also affected sales in some urban markets.
Geely had expected at least match last year’s sales volume, which jumped 20% to a record 1.5 million units. Now the company anticipates deliveries of 1.36 million vehicles in 2019.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.