| Shanghai
Automotive Co Ltd, the listed unit of Shanghai Automotive Industrial Corp, said
yesterday that third-quarter profit dropped 16 percent as a result of higher costs
at several of its auto parts subsidiaries. Net
income declined to 284 million yuan (US$35.5 million) during the July-to-September
period from 341 million yuan a year earlier, according to a company statement
posted on the Shanghai Stock Exchange. The
Shanghai-based company said sales gained 15.7 percent to 2.2 billion yuan in the
latest quarter. "The
lower profit was caused by increasing costs at auto parts subsidiaries such as
gearbox makers and spring manufacturers," said Shanghai Auto's Zhang Tao.
Total profit
over the first three quarters increased 1.2 percent year on year to 825 million
yuan, following a 14 percent first-half profit growth of 540 million yuan. Sales
for the first nine months surged 39 percent to 6.68 billion yuan, the statement
said.
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