Holden Back to Profit

A moment most of the Australian automotive industry was expecting for has finally arrived. The local division of American manufacturer GM, Holden, announced this week its financial figures for the past year, and with them came the news that the company is, after two years of struggles, back in business, with a profit.

According to the figures provided by Holden, the company had a profit of AU$112 million, backed by a growth in the domestic market of 11 percent compared to 2009. For the markets outside Australia, the growth was even bigger, now staying at 13 percent above the levels of the previous year.

“We are pleased to announce a return to profitability, and to achieve our goal of putting Holden ‘back in the black’ in 2010, but sustained business performance, and our ability to meet the needs of the Australian market, is critical for Holden’s long-term viability,” said Mark Bernhard, Holden's CFO.

Holden posted a consolidated revenue of AU$4.4 billion in 2010, compared to $3.8 billion in 2009. As a result of the improved revenues, the company's spending increased as well, making Holden and its AU$179 million spent for research and development last year one of Australia's top investors.

“The economic climate experienced during 2008 and 2009 required us to improve our structural cost base and business model to ensure the long-term profitability of our domestic business,” added the executive in charge with the company's finances.

“The measures we took to re-structure our organization and reduce costs during this period saw us emerge as a leaner, more flexible automotive manufacturer.”