VEAM reports revenue down in both Q3 and 9 months

An automobile assembly line at Ford Viet Nam's factory in northern Hai Duong Province. VEAM possesses major stakes in three joint ventures, namely Honda Viet Nam (30 per cent), Toyota Viet Nam (20 per cent) and Ford Viet Nam (25 per cent). — VNA/VNS Photo Tran Viet

The Viet Nam Engine and Agricultural Machinery Corporation (VEAM) saw revenue slump 18 per cent year-on-year to reach VND910 billion (US$39.3 million) in the third quarter of this year.

It also reported nine-month revenue down more than 20 per cent year-on-year to total VND2.67 trillion.

VEAM makes engines, agricultural machinery, automobiles and motorbikes, possesses major stakes in three joint ventures, namely Honda Viet Nam (30 per cent), Toyota Viet Nam (20 per cent) and Ford Viet Nam (25 per cent).

Gross profit margin increased significantly year-on-year, reaching 11.8 per cent while it was negative in the same period last year.

Financial revenue in Q3 totaled VND259 billion thanks to huge cash and bank deposits. In the first nine months of this year, revenue was VND742 billion, up by 18.9 per cent same period last year.

As of the end of September, the amount of cash and bank deposits amounted to VND17.7 trillion, an increase of VND832 billion compared to the beginning of the year. VEAM's nine-month deposit interest amounted to more than VND739 billion.

Profits earned from joint ventures and associates in Q3 reached VND1.37 trillion, down 17 per cent. The figure for nine months was VND3.3 trillion, down 33.5 per cent.

Despite reducing selling and administrative expenses, VEAM Q3's pre-tax profit still decreased by 7.3 per cent over the same period last year, reaching nearly VND1.63 trillion. The figure in nine months decreased by 23.5 per cent, reaching nearly VND4 trillion.

VEAM's consolidated post-tax profit in Q3 reached VND1.58 trillion, down 9 per cent year-on-year and that of nine months reached VND3.85 trillion, down 25.2 per cent over the same period last year.

Currently, the largest shareholder of VEAM is the Ministry of Industry and Trade, which holds 88.47 per cent of capital, equivalent to VND1.18 trillion. — VNS