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Toyota Tsusho (South Seas) Ltd, trading as Asco Motors in Fiji, Samoa, American Samoa and Tonga, has reported a four percent drop in after tax profits for the six months to September 30, 2009.
TTS filed its half year results at the South Pacific Stock Exchange where it is listed, disclosing a three percent drop in sales revenue as trading conditions were described as “difficult”.
“Each company within the group had its own issues to deal with. In Fiji the company is dealing with a significantly reduced new vehicle market due to the impact of the 20 percent currency devaluation in April,” said TTS CEO and director Ian McLean.
In Samoa, the new vehicle market remained low awaiting the boost, which is anticipated to occur as a result of the September 2009 switch to Right Hand Driving Control.
American Samoa has been relatively stable whilst Tonga still remains low after the boost experienced last year due to the Royal Coronation.
“It should be noted that the American Samoa facilities in Pago Pago sustained extensive damage resulting from the tsunami event in September 2009,” McLean added.
“Temporary operations have been established whilst plans are made to repair the facility. The financial impact of the damage cannot be determined until current negotiations with insurers on the insurance settlement are completed. No staffs were injured during the event. Operations in Samoa and Tonga were unaffected.”
Overall, he said, the company expected the current market conditions to continue for the remainder of this trading year.
TTS recorded sales revenue of F$48.67 million for the half year to September 30, compared to F$50.38 million during the same period last year.
The company’s after tax net profit stood at F$651,000 for the period, down four percent from F$679,000 for the same period in 2008.
TTS last traded at $1.97 at SPSE.
