Truck Sales Boost Profit

A model poses with a Dongfeng truck at the Shanghai International Auto Show last year. Dongfeng Automobile Co, a Chinese partner of Nissan Motor Co, said profit increased 9.5 percent in 2007 as the country's economic growth and construction boom boosted truck sales.

Dongfeng Automobile Co, a Chinese partner of Nissan Motor Co, said profit increased 9.5 percent last year as the country's economic growth and construction boom boosted truck sales.

Net income rose to 678 million yuan (US$97 million), or 0.245 yuan per share, from 619 million yuan, or 0.243 yuan, a year earlier, the company said in a Shanghai stock exchange statement on Saturday. Sales rose 27 percent to 12.8 billion yuan.

Dongfeng Auto sold more Nissan and own-brand Duolika trucks last year as growth in building and manufacturing increased demand for commercial vehicles. The overall market expanded 22 percent as China's economy grew at the fastest pace in 13 years.

Dongfeng Auto, the country's biggest light commercial vehicle maker, boosted vehicle sales 19 percent to 150,038 units last year, with diesel engine sales gaining 42 percent to 136,973. The truck maker, based in Wuhan in central China, makes engines with Columbus, Indiana-based Cummins Inc.

The company plans to pay a dividend of 1.5 yuan for every 10 shares, it said in a separate statement. Nissan, Japan's third-largest auto maker, and Hong Kong-listed Dongfeng Motor Group Co are equal owners of Dongfeng Auto's parent.

The truck maker rose 2.9 percent to 6.33 yuan in Shanghai trading on Friday. It has fallen 27 percent this year, matching the 27 percent plunge for the benchmark CSI 300 Index.

Source: CRI English