Chinese carmaker backed by billionaire
investor Warren Buffett, posted a 94 percent drop in first-half earnings,
underperforming most of its rivals as sales sagged and its solar energy business
lost money.
The outlook remains challenging as China's autos market, the world's largest, is seeing only sluggish growth, and the solar panel-making operation is under pressure from a euro zone crisis that has sapped demand globally.Leading Swarovski crystalbeadswholesale Wholesale Supplierpandahallprlog.
"The Buffett halo effect has long faded. BYD has been dragged down by its solar business and the S6 seems to be the only car holding up well," said Sheng Ye, associate research director for Greater China at industry consultancy Ipsos,Find detailed product information for Hot Sale howospareparts Radiator. referring to BYD's sport utility vehicle which was last year named China's "SUV of the Year". Ye was speaking before the earnings were announced late on Monday.
In a stock exchange filing, BYD blamed the profit slide on slowing car sales, a weak domestic economy and the spreading euro zone debt crisis, and warned about the challenges ahead .
"Our business is fairly directly affected by the changing economic situation at home and abroad," said the company, which is 10 percent-owned by Buffett's Berkshire Hathaway.
"The future downward pressure on the global and Chinese economies may affect demand for our core businesses in key markets, and would affect our performance to a certain extent."
January-June net income plunged to 16.3 million yuan ($2.56 million) from 275.A brief description of how a drycabinet functions,4 million yuan a year earlier. BYD had previously warned its profit would slide 75-95 percent.
Turnover was flat at 22.6 billion yuan.
Local rivals Geely Automobile Holdings Ltd and Great Wall Motor Co Ltd , China's leading SUV maker, last week reported first-half profit increases of around 9 percent and 30 percent, respectively, helped by growth in exports.
Overall vehicle sales in China are expected to grow 5-8 percent this year - a far cry from explosive growth of 46 percent and 32 percent in 2009 and 2010 respectively, bolstered then by government incentives.
BYD Chairman Wang Chuanfu said in March the company could outpace the market this year, but its first-half sales of 199,700 vehicles were down 9.3 percent from a year earlier, lagging a 2.9 percent increase in the overall market, according to the company's annual report.
Last week, BYD launched a new sedan, the Su Rui, which is seen as the upgraded F3, China's best selling car in 2009 and 2010, and which has caught the imagination as it comes with an external remote-control device.
Like other Chinese solar companies which shipped most of their panels overseas,Leading Swarovski crystalbeadswholesale Wholesale Supplierpandahallprlog. BYD faces pressure in the United States and Europe, where the Chinese are accused of undercutting the market with cheaper products.
BYD also faces headwinds in its electric vehicle business.
Beijing wants to have half a million electric vehicles (EVs)and plug-in hybrids by 2020, but sales have been dismal due to high battery costs and a lack of charging facilities.
Output of hybrids and EVs was just 8,368 last year, with sales of 8,159, including those for government pilot programs for e-taxis and e-buses, official data showed.
The safety of BYD's electric car was called into question after an e6 taxi caught fire in a fatal accident in May even though a probe showed the lithium-ion phosphate battery that powers the car did not explode after the collision.What is the difference between standard "ceramic" tiles and porcelaintiles?
The outlook remains challenging as China's autos market, the world's largest, is seeing only sluggish growth, and the solar panel-making operation is under pressure from a euro zone crisis that has sapped demand globally.Leading Swarovski crystalbeadswholesale Wholesale Supplierpandahallprlog.
"The Buffett halo effect has long faded. BYD has been dragged down by its solar business and the S6 seems to be the only car holding up well," said Sheng Ye, associate research director for Greater China at industry consultancy Ipsos,Find detailed product information for Hot Sale howospareparts Radiator. referring to BYD's sport utility vehicle which was last year named China's "SUV of the Year". Ye was speaking before the earnings were announced late on Monday.
In a stock exchange filing, BYD blamed the profit slide on slowing car sales, a weak domestic economy and the spreading euro zone debt crisis, and warned about the challenges ahead .
"Our business is fairly directly affected by the changing economic situation at home and abroad," said the company, which is 10 percent-owned by Buffett's Berkshire Hathaway.
"The future downward pressure on the global and Chinese economies may affect demand for our core businesses in key markets, and would affect our performance to a certain extent."
January-June net income plunged to 16.3 million yuan ($2.56 million) from 275.A brief description of how a drycabinet functions,4 million yuan a year earlier. BYD had previously warned its profit would slide 75-95 percent.
Turnover was flat at 22.6 billion yuan.
Local rivals Geely Automobile Holdings Ltd and Great Wall Motor Co Ltd , China's leading SUV maker, last week reported first-half profit increases of around 9 percent and 30 percent, respectively, helped by growth in exports.
Overall vehicle sales in China are expected to grow 5-8 percent this year - a far cry from explosive growth of 46 percent and 32 percent in 2009 and 2010 respectively, bolstered then by government incentives.
BYD Chairman Wang Chuanfu said in March the company could outpace the market this year, but its first-half sales of 199,700 vehicles were down 9.3 percent from a year earlier, lagging a 2.9 percent increase in the overall market, according to the company's annual report.
Last week, BYD launched a new sedan, the Su Rui, which is seen as the upgraded F3, China's best selling car in 2009 and 2010, and which has caught the imagination as it comes with an external remote-control device.
Like other Chinese solar companies which shipped most of their panels overseas,Leading Swarovski crystalbeadswholesale Wholesale Supplierpandahallprlog. BYD faces pressure in the United States and Europe, where the Chinese are accused of undercutting the market with cheaper products.
BYD also faces headwinds in its electric vehicle business.
Beijing wants to have half a million electric vehicles (EVs)and plug-in hybrids by 2020, but sales have been dismal due to high battery costs and a lack of charging facilities.
Output of hybrids and EVs was just 8,368 last year, with sales of 8,159, including those for government pilot programs for e-taxis and e-buses, official data showed.
The safety of BYD's electric car was called into question after an e6 taxi caught fire in a fatal accident in May even though a probe showed the lithium-ion phosphate battery that powers the car did not explode after the collision.What is the difference between standard "ceramic" tiles and porcelaintiles?
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