Chinese maker BYD forecasts huge jump in profit image

BYD, the Chinese automaker partially owned by Warren Buffet’s Berkshire Hathaway Inc. has predicted full-year profit will jump as much as 619 % thanks to improved car sales and narrowing losses in its solar-energy business sector.

In a statement to the city’s stock exchange, the Shenzhen, China-based company claimed it will reach a net income in between 545.1 million yuan ($89 million) and 585.1 million yuan for 2013. Although a mssive increase from 2012’s figures, the analysts surveyed by Bloomberg predicted a higher average – of 766 million-yuan.
Billionaire founder and chairman Wang Chuanfu has commented that the company is on the verge of a “second takeoff” in 2013 as BYD completes a three-year restructuring plan. During that period, the profit slumped no less than 97 % because of losses registered at its photovoltaic business, a decline in global battery sales and a decrease of car deliveries.

But now the company expects auto sales and profit to go up massively in the fourth quarter, a traditional peak season for car sales, driven by demand for models including the Speed sedan and S6 SUV, according to a company statement. BYD also said that third-quarter net income increased no less than 727% to 38.2 million yuan. The Chinese automaker’s shares have surged so far 63%.

Via Bloomberg