Dongfeng Automobile forecasts big profit slide

Dongfeng Automobile Co. said Thursday its first-half profits are expected to fall dramatically due to sliding sales.

In a statement filed to the Shanghai Stock Exchange, the Wuhan-based automaker forecast a 60-70 percent drop in its first-half profits as sales of heavy trucks, engines and light trucks all dipped from one year earlier.

The carmaker's profits stood at 294.52 million yuan (46.75 million U.S. dollars) in the first half of 2011.

Dongfeng is not the only automaker that has reported falling first-half sales. Beiqi Foton Motor Co., a leading commercial vehicle manufacturer, said earlier this month that its heavy truck sales plunged by 31.4 percent year-on-year in the first half, while light truck sales edged up just 2 percent.

Anhui Jianghuai Automobile Co. said Monday that its first-half sales dipped 16 percent year-on-year, dragging profits down by 37.3 percent from one year earlier to 313 million yuan.

Analysts said domestic automakers, especially commercial vehicle manufacturers and auto parts makers, will likely have a bumpy 2012 due to the slowing economy, the removal of subsidies and tighter rules on new car registration.

Dongfeng's shares fell 0.98 percent to 3.03 yuan as of 10 a.m.