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Kenya

CMC profits grow by 50%

NAIROBI, Kenya, Jan 12 – CMC Holdings has announced a 49.9 percent increase in its after tax profits for the year ended September 30, 2008.

A statement signed by the Group’s Chief Executive Martin Forster on Monday showed that the company’s net profits grew from Sh618.3 million in 2007 to Sh927.2 million last year, while their turnover increased by Sh2.5 billion from Sh7.6 billion.

“We can therefore say that 2008 has been extremely successful and has followed the trend set in 2006 and 2007,” he boasted.

Mr Forster said that during the period under review, the company maintained its dominance in the large buses and agriculture tractors categories, with its market share standing at 60 and 80 percent respectively.

He said that although the global economic downturns that has greatly affected America, Europe and Asia and the escalation of foreign exchange rates particularly the appreciation of the Japanese Yen against the Kenyan shilling have been a major concern for them, he projected that the last quarter would improve.

“We are confident that the transport and tourism industries will recover and we therefore see an improvement over the remaining period of our financial year,” the CEO added.

The board of directors recommended a dividend payout of Sh0.45 per share which would be subject to approval by shareholders at the Annual General Meeting on February 27, 2008.

The dividend is Sh0.10 more than what was paid out in 2007.

CMC Holdings, the holding company for Cooper Motor Corporation (CMC) Group of companies has the exclusive distribution for a wide range of motor vehicles such as Land Rover, Ford, Mazda and Suzuki as well as an extensive range of farming implements from ploughs to irrigation equipment.

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With nine branches in Kenya and one in Kampala, Uganda, CMC Motors Group has the largest distribution network in East Africa for sales, parts and service.

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