CAIRO: GB Auto released its first-quarter results for fiscal year 2008, reporting an increase in revenues of 30.3 percent to LE 1.1 billion ($201 million), up from LE 847 million during the same period last year. Gross profit grew by 45.3 percent to reach LE 192 million, compared to LE 132 million a year earlier. The group reported gross and operating profit margins of 18.2 percent and 13 percent, versus 16.3 percent and 11.8 percent in 2007, respectively. Net income grew by 89.8 percent to reach LE 91.1 million, up from LE 48 million in the year before. Commenting on the results in its daily market report, Beltone Financial said, "We believe the performance of the main divisions was strong given that the first quarter of the year is typically the weakest quarter. The results show a strong performance that is likely to continue despite the new resolutions to increase fuel prices and vehicle registration fees, said Beltone. "We do not believe that buying a passenger car, in Egypt, is a decision that will be affected by a minimal increase in related monthly costs. It is becoming increasingly difficult to use public transportation, which is sometimes unavailable in remote areas and, therefore, we see little effect on the buying public's demand for new cars. Moreover, a New Traffic Law is underway. Sales of three-wheelers have been affected negatively during the first quarter, as authorities were heavily confiscating tuk-tuks from their owners. The situation is expected to be resolved shortly, as the Traffic Law was approved by legislative authorities, and will be heard in the People's Assembly, said Beltone. The Law, when passed, would have a positive effect on passenger car sales (increased taxi sales), tuk-tuk sales, and trucks sales (new Trailers Law).
