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FAW Car's Q1 profit more than tripled after cost cuts

From Bloomberg| April 29 , 2008 10:02 BJT

FAW Car Co., the Chinese partner of Mazda Motor Corp., said first-quarter profit more than tripled after it cut costs and sold more vehicles.

Net income climbed to 311.8 million yuan ($44 million), or 0.1916 yuan a share, from 86.3 million yuan, or 0.0531 yuan, a year earlier, the Changchun, Jilin province-based carmaker said in a Shenzhen stock exchange statement today. Sales rose 69 percent to 4.9 billion yuan.

The company, a unit of China's second-biggest carmaker, boosted first-quarter vehicle sales 77 percent on surging demand for Mazda6 sedans and its own-brand Besturn sedans. The country's overall vehicle market expanded 21 percent during that period as economic growth made cars affordable to more people.

FAW Car boosted sales of Mazda6s 47 percent from a year earlier to 17,589, according to the China Association of Automobile Manufacturers. Sales of Besturn sedans more than tripled to 10,783, according to the association.

The automaker, a unit of China FAW Group Corp., rose 5 percent to 14.20 yuan in Shenzhen trading on April 25. The company has lost 26 percent this year, compared with a 29 plunge for the benchmark CSI 300 Index. The carmaker more than quadrupled last year.

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