China's CNR Corp posts 145 pct jump in H1 net profit

Date:2011-08-27     Source:yangshujielile  Text Size:

(Corrects to say net profit jumped by 145 pct to 1.6 bln yuan)

SHANGHAI Aug 26 (Reuters) - China CNR Corp Ltd , the nation's No.2 train maker, posted a 145 percent surge in its first-half net profit, it said on Friday, adding that the recent recall of its bullet trains would not have a significant impact on its full-year earnings.

Net profit for the train maker surged to 1.6 billion yuan ($250.4 million), after revenues rose nearly 62 percent, it said in a statement.

Gross profit was up 122 pct to 1.87 billion yuan.

CNR on Aug 12 recalled 54 of its bullet trains that were used on the new Beijing-Shanghai high-speed rail line after the service suffered a series of disruptions.

The train maker reiterated that the recall would have some impact on full-year earnings due to costs associated with safety checks, but the impact would not be "severe".

Existing sales contracts were also unaffected.

Shares in CNR, listed in late 2009, have plunged 33 percent so far this year to close at 4.74 yuan on Thursday. ($1 = 6.390 Chinese Yuan) (Reporting by Fayen Wong and Ruby Lian; Editing by Ken Wills)

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