Proton May Continue To Loss Q2
November 28th, 2005 at 09:40pm tiger Entry Filed under: Auto News, Malaysia
PROTON Holdings Bhd may post a staggering pre-tax loss of some RM700 million for the second quarter, caused mainly by red ink at its overseas subsidiary MV Agusta, the Italian motorcycle manufacturer, an industry source said.
Two months ago that the national carmaker had surprised investors with a first-quarter net loss of RM12.4 million.
Undertaking MV Agusta’s outstanding debts with banks and suppliers turned out to be a very expensive venture, and now Proton is paying a high price for its foray overseas. It is believed that the deal to buy a controlling 58 per cent stake in MV Agusta Motor SpA last October set Proton back by e70 million, or some RM350 million, by underwriting the company’s loan from Citibank. The new financing saved MV Agusta, allowing a court in Italy to drop temporary receivership proceedings against the Italian motorcycle maker.
Now is the hard time To make some hard decisions for proton on whether to cut its losses and sell off the ill-fated MV Agusta.
Category : Auto News, Malaysia
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