Egypt's largest car company hit by 88% annual profits decline in Q3/2013

Ahram Online, Thursday 14 Nov 2013

2013 has been the 'toughest year the economy has ever seen' says CEO

Egypt’s biggest listed vehicle assembler and distributor, GB Auto, has reported a net income of LE7.5 million in the third quarter of 2013, down 88.6 percent from the quarter before, the company announced on Wednesday.

During the nine months of 2013 GB Auto has also seen a sharp decline in net profits of 50 percent, recording LE71 million compared to LE142 million in the same period of last year.

“Having managed businesses through decades of challenges, there is no question in my mind that 2013 has been the toughest year the economy has ever seen,” GB Auto CEO Raouf Ghabbour was quoted as saying in the firm’s report.

“Political and economic developments in our home market in 3Q13 combined with the imposition of a strict curfew saw consumer confidence hit its nadir. The result, of course, is that our performance in Egypt was particularly hard-hit,” he added.

Despite the hardships seen by the region's leading automotive assembler, revenues of GB Auto generated from selling passenger cars rose 4.1 percent in the third quarter this year to LE1.43 billion compared to the same period in a year earlier.

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