BYD (Build Your Dreams) Co., the Chinese automaker that is backed by Warren Buffet, reported its worst loss in almost two years in Hong Kong trading after 3rd quarter profit dropped 99 percent due to slow sales. Shares of the company declined 10 percent, the biggest drop since Nov. 2008.
BYD posted a net income of 11.34 million yuan ($1.7 million) for the three months that ended Sept. 30.
“Profit was pretty disappointing and well below our estimations,” Galant Ng, an analyst at Taifook Securities Group Co. in Hong Kong,” said in an interview with Automotive News. Ng said that BYD suffered mainly from declining car sales and higher costs.
BYD, which was the fastest growing automaker in China last year, cut its 2010 vehicle sales target by 25 percent in August due to higher taxes on smaller cars. The automaker was recently ordered to surrender 7 facilities after the Chinese government said it built them illegally.
BYD has delayed plans to export electric-vehicles to the United States as well. Warren Buffet is probably not a happy camper.
– By: Omar Rana
Source: Automotive News (Subscription Required)