Chinese automaker BYD forecasts up to 84 percent profit rise for 2016
Chinese automaker BYD forecasts up to 84 percent profit rise for 2016
Chinese automaker BYD Co Ltd , backed by Warren Buffett's Berkshire Hathaway Inc,
on Sunday said 2016 full-year profit was likely to rise as much as
84.17 percent, as rapid growth of the green car market eases. The
Shenzhen-based manufacturer, which has invested heavily in making
electric and hybrid petrol-electric vehicles, forecast a 77.09 percent
to 84.17 percent increase in net profit for the year, at 5.0 billion
yuan ($737.90 million) to 5.2 billion yuan. For
the first nine months of 2016, BYD reported 3.66 billion yuan in
profit, an 86.82 percent increase year-on-year. That compared with the
automaker's forecast in August of 83 percent to 91 percent for the
period. BYD
reported triple-digit profit growth for the previous four quarters. But
its earnings expansion in the first nine months of 2016 slipped below
100 percent as the overall market for green-energy vehicles moderates
after government support helped it quadruple last year. Overall
sales of electric and plug-in hybrids in China totaled 289,000 vehicles
in January-September, according to China's automakers association, far
from its target of 700,000 vehicles for 2016. An association official
said Friday that sales were now likely to miss that target. Analysts
said China may struggle to meet that target following the revelation
that dozens of companies had been cheating the subsidy system.
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