The Colonial Motor Company’s half-yearly after tax profit to December 31 has jumped 15.9% to $11.9 million.
Growth in heavy truck sales and volume from its Kenworth and DAF brands was one of the key factors behind the result, according to a statement released on the NZX.
However a slowing rate of growth impacted on the profitability of its new car dealerships, which include Ford and Mazda.
“The car dealerships trading profit was lower than the record result a year earlier but above that achieved in both 2015 and 2014.
“Segment shifts within the market continue with the established pattern away from sedans and hatches into SUVs and light commercials. This trend affects Ford and Mazda differently. Mazda is strong in the important SUV segment, while Ford is successful in the light commercial sector.”
Looking ahead, CMC predicts the total new vehicle market will keep growing, with strong forward orders for heavy trucks.
“However the pace of growth has slowed from a year ago and business confidence is more cautious.”
