Proton today announced pre-tax profits for a third successive quarter and ended its financial year (March 31 2008) with a group pre-tax profit of RM162 million. The improved financial health was attributed to its focus on operational improvements and its perseverance.

The improved performance was achieved on the back of increased revenues to RM5.6 billion, compared with RM4.9 billion in the previous year. This increased revenue came from increased sales volumes, mainly contributed by the company’s two youngest models – the Persona and New Saga.

The group has also benefited from its revenue diversification program with income from sale of rights for use of its intellectual property, in its export markets, according to Proton Chairman Dato' Mohammed Azlan Hashim.

“As a company that seeks to maximize long-term growth, Proton understands the importance of introducing new products and models that meet the expectations of the market. This is clearly demonstrated by the good reception to the Persona and Saga and as such, Proton is committed to further enhance its R&D and product development activities with a view to further invest in projects that meet the requirements of the market and allow for quick commercialization,” he said.

In the last financial year alone, Proton spent over RM500 million on R&D projects and activities

He added that, in the last financial year alone, Proton had spent over RM500 million on R&D projects and activities, in-line with this philosophy.

Given Proton’s commitment to R&D and the development of locally-owned intellectual property, Dato' Mohammed Azlan further underlined that Proton has met the stringent requirements stipulated under the Government's announced National Automotive Policy (NAP). In this regard, Proton had qualified to enjoy the benefits of the facilities offered under the NAP. Facilities available under the NAP are available for any automotive manufacturer in recognition of efforts to increase the level of intellectual property created within the industry.

On the export front, Dato' Mohammed Azlan said that exports performance in the fourth quarter showed significant improvement. Over 7,000 units were shipped - compared to just over 1,700 units in the previous quarter. Total exports for the financial year amounted to approximately 17,300 units.

For the current financial year ending 31 March 2009, given the new product range, Proton expects to significantly improve its export sales. The Persona and New Saga are to be launched in the company’s major export markets from this June 2008 onwards.

Major contributors to increased revenues have been the two youngest models, the Persona and the New Saga

Proton will continue to strengthen itself in all aspects - operational, financial and corporate - to better equip itself in the years ahead. It will adopt a 3-pronged thrust namely development of market-driven products, focus on high growth regional markets and a production strategy that achieves economies of scale.

Proton will introduce a MPV early next year but it's unlikely that the shape will be like this prototype developed by Lotus, a subsidiary of the carmaker

Going forward, Dato' Mohammed Azlan said the launch of an MPV in early 2009 will see the Proton product portfolio expanded and more importantly, its entry into a growing automobile segment. In terms of volume, Proton has set itself the target of doubling its total sales volume to 300,000 units by 2010.

"We are all excited about our future direction and plans, now that we have laid the foundations for future growth. The various initiatives and adjustments to clean up all known ‘legacy issues’ is beginning to show results as evident by Proton already delivering on some of its promises with regard to product variety, product quality, export improvement, revenue diversification and efficiency improvement. "We now look forward to see Proton revving up and sustaining good growth in the future," he said.

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