CAIRO: GB Auto, Egypt’s only publicly traded automotive company, posted a net income of LE 417.1 million for the first nine months of 2008, a 72 percent increase over the same period in 2007.
The company’s released its consolidated results Thursday, reporting sales of 44,198 passenger cars.
“Strong growth in passenger car sales and capturing of market share in its commercial vehicle line of business helped GB Auto’s total revenues climb 30.9 percent to LE 4,300.9 million for the third quarter of 2008.
However, “it is increasingly clear that the global economic crisis will cause a slowdown in the growth of Egypt’s economy, a fact that is likely to impact GB Auto’s sales heading into the fourth quarter, GB Auto’s CEO said.
The company’s gross profit margin rose to 17.7 percent, a 3.6 percent increase.
“Growth of our motorcycles and three-wheelers segment has resumed and our transportation services line of business recorded both gross and operating profits, said GB Auto CEO Raouf Ghabbour in a statement to the press.
Sales of passenger cars grew 23.7 percent to 16,731 units, commercial vehicles 30.9 percent to 1,072 units, and motorcycles and three-wheelers 17.7 percent to 14,454 units. “Tuk-tuk sales accelerated once again, said the company.
Egypt’s car market, which grew more than 30 percent in the first seven months of the year, grew just 7 percent in August and contracted 2 percent in September, the statement read.
“International institutional investors are selling down their positions in Egypt to meet the demands of redemptions in their home markets, Ghabbour said.
Egypt has revised its growth target for the coming year to 6 percent from an earlier estimate of more than 7 percent.
Heading into the new year, the company will focus on the acquisition of new market share, and “GB Auto remains open to appropriate acquisitions that would fundamentally strengthen our position in the market, Ghabbour added.
