August 21, 2019 / 4:38 AM / 2 months ago

China's Geely says first-half profit drops 40%

SHANGHAI, Aug 21 (Reuters) - China’s Geely Automobile Holdings Ltd said on Wednesday first-half net profit dropped 40%, as the country’s auto market sees a sustained decline.

Geely, China’s highest profile car maker globally thanks to the group’s investments in Volvo and Daimler, posted a net profit of 4.01 billion yuan ($568.5 million), compared to the 6.67 billion yuan it made in the same period a year earlier.

UOB analyst Kenneth Lee had expected Geely to report a 4.78 billion yuan profit for the period, according to Refinitiv data.

Total revenue for the first half was 47.56 billion yuan, down from 53.71 billion yuan over the same period in 2018, it said.

Last month, Geely cut its sales target for the year to 1.36 million units from 1.51 million units, seeking to reduce dealers’ inventories amid uncertainty in the overall car market.

Geely sold 1.5 million cars last year, 20% higher than the figure for 2017.

It sold 651,680 vehicles between January-June, around 15% lower than its total over the same period last year. ($1 = 7.0537 Chinese yuan renminbi) (Reporting by Yilei Sun and Brenda Goh in Shanghai; Editing by Muralikumar Anantharaman)

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