NAIROBI, Kenya, Dec 9 – Motor vehicle dealer CMC Holdings has announced a profit warning for the year ended September 30.
In a letter to the Capital Markets Authority (CMA) on Wednesday, CMC Group Chief Executive Martin Forster attributed the anticipated reduced earnings to the global recession, drought and the depreciating shilling.
“The motor vehicle industry in East Africa is experiencing reduced volumes this year and we expect this trend to continue at least until the first quarter of 2010,” explained Mr Forster.
He said their half yearly trading results published in May had indicated likelihood of reduced profits due to the global recession, but its impact was not evident then.
“The management is taking all the necessary measures to ensure that we are able to compete and secure our share of the motor vehicle market and maintain a reasonable level of profitability in the current trading environment,” Mr Forster said.
CMC Motors Group Limited, a subsidiary of CMC Holdings, is the largest company within the group and a leading player in the East African motor industry with exclusive distribution for Land Rover, Ford, Mazda, Volkswagen, Suzuki, Maruti, Nissan Diesel range of trucks (medium and heavy commercial) and buses, Iveco, Bobcat, New Holland and Case tractors.