CAIRO: Egypt s GB Auto posted a 64 percent drop in net income to LE 63.9 million ($11.7 million) for the third quarter of 2009, missing forecasts by two analysts, but said it saw an upturn in the car market.
Strong quarter-on-quarter earnings and revenue growth and the flattening of declines compared to the first half signal that the recession in Egypt s passenger car market may now be drawing to a close, Chief Executive Officer Raouf Ghabbour said in a statement on Wednesday on the firm s website.
Two analysts had forecast net profit for the quarter of LE 70 million and LE 79 million. GB Auto said revenues had dropped 27 percent year-on-year to LE 1.2 billion in the third quarter, but rose 14 percent on the previous quarter.
Monthly passenger car sales at Egypt s biggest listed automobile assembler, after plummeting to 530 units in January 2009, had averaged at 4,100 units since April 2009. The firm s average monthly sales in 2008 had stood at 4,250 cars.
We now enter the fourth quarter anticipating a return to year-on-year growth in our key lines and looking forward to implementing from a position of strength our plans to expand in both domestic and export markets, Ghabbour said.
Decisive management action amid the (global financial) crisis has left us in a very strong position to deliver on our plans for national and regional expansion: We have become a leaner organization, he said.
GB Auto manufactures, assembles, imports and distributes vehicles for Hyundai, Volvo, Mistubishi and Bajaj. It said last month it would form a subsidiary to help buyers purchase Bajaj vehicles on credit, a move that would help it expand sales in lower income groups.
