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NEWS
Holden posts $153 million loss
CFO blames high Aussie dollar, but forecasts "future profitability"Holden has incurred a loss of $152.8 million, according to the company's financial results for 2012.
It's the first year since the GFC in 2008 that the local manufacturer has finished up with red ink on the balance sheet.
George Kapitelli, Holden Chief Financial Officer, placed the blame squarely on a tough market environment – with the dollar at levels not seen since the early 1980s.
“Australia is one of the most open and trade-exposed automotive markets anywhere in the world with more than 180 passenger cars to choose from. With the Australian dollar at levels not seen since the early 1980s, this puts particular pressure on our Australian manufacturing operations,” Mr Kapitelli was quoted as saying in a statement released by Holden today.
“While we benefit from the strength of the currency with our imported models, we are the most trade-exposed of the local manufacturers, with 60 per cent of our sales from the locally produced Commodore and Cruze.
“Despite the loss Holden is well positioned for future profitability, with a strong and healthy balance sheet and zero debt.
“Holden remains committed to a long term future in Australia – in 2012 we increased our capital spend in plant and equipment by $65 million to over $100 million in preparation for the launch of VF Commodore. Holden also spent $197 million on Research and Development (R&D) activities, taking our R&D investment to over $1 billion in the last 5 years.”
Contributing to the loss were one-off charges to restructure the business with a smaller workforce ($226 million) and revenue reduced from $4.3 billion in 2011 to $4.0 billion in 2012.
Holden MD Mike Devereux remained confident that the company can recover, with a revised Cruze and the new VF Commodore set to enjoyed renewed sales growth in the current financial year.
“The updated Cruze has been critically acclaimed for its local engineering and drive performance, and we are confident VF Commodore will win hearts and minds – it’s the most technologically advanced car ever created in Australia. These locally produced vehicles, along with the new imported Malibu and Trax models,will improve our market position in the second half.
“In addition to our new product investments, over the past few years, Holden dealers have invested more than $100 million in new and substantially upgraded facilities, vehicle service equipment and customer management systems, the largest dealer investment in decades.”
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