Proton Holdings Bhd recorded a pre-tax loss of RM51.535 million for the third quarter ended Dec 31, 2010 compared to a pre-tax profit of RM82.958 million in the previous corresponding quarter.

Revenue for the quarter decreased to RM1.833 billion from RM2.013 billion, the company said in a filing to Bursa Malaysia today.

For the nine-month period, Proton recorded a lower pre-tax profit of RM134.379 million from RM247.989 million previously although revenue rose to RM6.363 billion from RM5.969 billion.

"The decline in profit is largely attributable to higher branding costs, as well as restructuring expenses incurred by Lotus Group International Ltd.

"As part of the transformation plans to turn around Lotus, the group started investing in rationalisation of dealers network and branding activities to deliver the five-year business plans," it said.

It also said that during the third quarter, the group experienced lower domestic sales volume and increased promotional and marketing spending by a principal subsidiary.

Looking forward, it said: "The improved domestic market outlook and rising fuel prices augurs well for Proton's core models.

"Coupled with the good response and delivery of the Inspira, our prospects for growing sales volume and increasing market share for the fourth quarter ending March 21, 2011 are good."

- Bernama