Geely Auto '09 profit up 34.5%, eyes '10 sales up 22%

Shanghai, April 12 (Gasgoo.com) Geely Automobile Holdings Ltd. <0175.HK> said its net profit in 2009 rose 34.5% to 1.183 billion yuan ($173 million) and aims for 22% growth in sales this year, though its net income fell 8% in the second half on increased costs, media reported today.

As the listed subsidiary of Zhejiang Geely Holding Group which is buying Ford's Volvo brand, Geely Auto said its 2009 profit was boosted by higher sales and on increased stakes in its operating units. The group injected nearly all its stake in core car-making operations into its listed arm last year.

By benefiting from government stimulus measures for the auto sector, Geely sold 326,710 million cars last year, up 60% from 2008, lifting its share in the Chinese auto market to more than 4%. Sales revenue more than tripled to 14.1 billion yuan from 4.29 billion yuan.

Geely booked a 587 million yuan net profit for the second half of last year, compared with 636 million yuan a year earlier, because of increased costs, but the company is targeting 22% growth in sales this year to 400,000 cars.

Zhejiang Geely Holding signed a deal on March 29 to buy Volvo from Ford Motor for $1.8 billion. Geely is seeking to boost profit by offering more expensive models at home and selling 50% of its cars overseas by 2015.