Chinese automaker Geely Automobile Holdings on Monday stated 2020 may be one of the “most difficult years” in its history, as pressure emerging from the coronavirus crisis on production and sales is likely to continue in the near future.
The automaker also said the decline in sales drove net profit down 35% in the last year when the country’s overall auto market suffered a prolonged downturn.
China’s most popular automaker – due to parent Zhejiang Geely Holding Group’s investments in European manufacturers Volvo Car and Daimler AG – reported a profit of 8.19 billion yuan ($1.15 billion).
That compared with the 9.14 billion yuan ($1.29 billion) average of 33 analyst estimates, Refinitiv data revealed.
“The recent outbreak of novel coronavirus had caused serious disruption to our supply chain and thus our production levels, meaning extra pressure on our business volume and profitability in 2020,” Geely stated in a filing to the Hong Kong exchange.
The existing crisis are likely to persist in the near future, making 2020 probably one of the most difficult years in the company’s history, Geely said.
Revenue dropped 9% from a year prior to 97.40 billion yuan ($13.72 billion). Analysts had estimated 99.43 billion yuan ($14 billion).
Geely Automobile sold 1.36 million cars last year and intends to sell 1.4 million cars this year.
Industry-wide auto sales dropped 8.2% last year, pressured by new emission standards and the impact of Sino-U.S. trade war.
Coronavirus has so far infected over 860,964 people and killed 42,364 worldwide.