(AFP) The outlook for national car maker Proton remains bullish despite the economic gloom after it turned in stronger-than-expected interim results, analysts said today.

Perusahaan Otomobil Nasional Bhd (Proton) late Monday announced a six-fold increase in its net profit to RM382.812 million for the six months to September, from RM54.335 million in the same period last year.

This was on the back of a 40 percent year-on-year rise in sales to 5.297 billion ringgit. Its earnings per share surged to 0.70 ringgit from 0.10 rinngit in the same period last year.

The carmaker attributed the improved results to higher domestic sales in the second quarter.

Proton's impressive showing amid difficult times boosted its shares which closed morning trade Tuesday up 0.40 ringgit at 6.30.

An auto analyst with a foreign brokerage said Proton's results were 85 percent above his expectations and some 43 percent above market consensus.

"The results were very good. We thought there could be a positive surprise in the earnings compared to our rather conservative forecast but this has really exceeded our expectations," he said.

Bright prospects

The analyst said sales of Proton cars were up some 16-20 percent year-on-year and attributed this to a full six months of higher selling prices for the Iswara and Wira models.

"It was also the impact from the favourable ringgit and yen exchange rate and some cost-cutting measures by Proton," he said.

The analyst said Proton was not likely to repeat its strong first half-year results in the second half of the 2002 financial year as sales were likely to slide amid the economic downturn.

But he said Proton's prospects were bright despite the economic gloom.

"Going forward, (the outlook is) even better for Proton with its new engines and new models," he added.

The analyst said he has revised upwards his 2002 forecast to a net profit of RM612 million, with 2003 net profit estimated at RM760 million.

Proton said today demand for its cars in the lower price segment was expected to stay firm and that results for the rest of the financial year ending March 2002 would remain "favourable".

"Although the economic outlook for the next six months is expected to weaken, the demand for Proton cars in the lower end segment and Waja is expected to remain firm for the rest of the financial year," it said in a statement.

"This is expected to contribute favourably to the company's results."

More than 65 percent of cars sold in Malaysia today are Proton, partly because of high tariffs on imported cars, but this tariff protection will largely disappear under the ASEAN Free Trade Area (AFTA) by 2005.

Under AFTA, tariffs on automotive products will fall to between zero and five percent from 2003 but Malaysia has delayed its implementation until 2005.