CNR Corp posts 145% jump in H1 net profit

Updated: 2011-08-26 09:35


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SHANGHAI - 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, Reuters reported.

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% 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.