BUSINESS IN ASIA TODAY - OCT 23, 2009

Oct 23, 2009 (AsiaPulse via COMTEX) -- MMTOF | Quote | Chart | News | PowerRating -- Business in Asia on October 23. A summary prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, market intelligence and business opportunities:

MITSUBISHI MOTORS OP LOSS SMALLER THAN EXPECTED FOR APRIL-SEPT

TOKYO - Mitsubishi Motors Corp. (TSE:7211) likely suffered a narrower group operating loss than projected for the six months through Sept. 30, boosted by rising sales in Japan and emerging markets. The estimated 30 billion yen (US$328 million) loss is roughly 5 billion yen less than the automaker's forecast, but sharply worse than the 25.3 billion yen operating profit of a year earlier. Mitsubishi Motors saw global sales exceed its target, led by strong demand for the Pajero Sport sport utility vehicle in Australia and Canada, as well as firm sales in Southeast Asia and the Middle East. Domestic sales were also solid, with the Colt subcompact benefiting from tax reliefs and subsidies for environmentally friendly vehicles.

CHINESE HOME APPLIANCE GIANT HAIER'S NET PROFIT UP 49% IN 3Q

BEIJING - Qingdao Haier Co., Ltd. (SSE:600690), a leading Chinese household electric appliance producer, announced Thursday that its net profit in the third quarter rose 48.88 per cent year on year to 300.7 million yuan (US$44.03 million). Its net profit in the first three quarters increased 28.7 per cent from a year earlier to 966.4 million yuan, the firm said in a statement to the Shanghai Stock Exchange. The eastern Shandong Province-based company attributed the net profit hike to reduced inventory and improved asset quality.

GM TAKES UP US$412 MLN RIGHTS OFFER BY KOREA'S GM DAEWOO

SEOUL - General Motors Co. has subscribed to a 491.2 billion won (US$412.7 million) rights offer of its South Korean affiliate GM Daewoo Auto & Technology Co., with no other shareholders joining the sale, GM Daewoo said today. The decision by GM to subscribe for the entire issue is likely to ease a liquidity crisis for GM Daewoo in the short term, but a spat with South Korea's state-run Korea Development Bank (KDB) to secure fresh loans is expected to continue, analysts say. None of the other shareholders of GM Daewoo, including KDB, Suzuki Motor Corp. and Shanghai Automotive Industry Corp., participated in the rights offer, according to a statement.

BRIDGESTONE TO CLOSE TYRE PLANTS IN S. AUSTRALIA AND NZ

ADELAIDE - More than 40 years of tyre production in Adelaide, South Australia, will end next year when Bridgestone (ASX:BDS) closes its manufacturing facility, with the loss of 600 jobs. The company said today it would also close a tyre production plant in Christchurch, New Zealand with the loss of 275 jobs. The two plants are the last tyre manufacturing facilities in both countries. The Adelaide plant has been operating since 1965 and will close by the end of April 2010, while the Christchurch plant has run since 1947 and will close by the end of 2009. Bridgestone said despite efforts to improve cost competitiveness at both plants, international forces had made tyre manufacturing in Australia and New Zealand increasingly difficult.

INDONESIA'S INDOSAT POSTS SMALLER PROFIT FOR FIRST 9 MONTHS

JAKARTA - The net profit of Indonesia's second largest telecommunications company PT Indosat (JSX:ISAT) shrank 1.6 per cent year-on-year to Rp1.45 trillion (US$156 million) in the first nine months of this year. The decline in net profit came with shrinking income to Rp12.41 trillion from Rp13.65 trillion in the same period, Harry Sasongko of the company, which is controlled by Qatar Telecom (Qtel), said. Sasongko said a 4.9 per cent increase in operating cost to Rp10.82 trillion also contributed to the decline in net profit. The number of its cellular phone subscribers fell 20 per cent to 28.7 million but income from the mobile phone division increased, Sasongko said.

AUSTRALIA'S TOLL BUYS EXPRESS LOGISTICS GROUP

SYDNEY - Australia's Toll Group (ASX:TOL) says it has acquired for about $A50 million (US$46.4 million), Express Logistics Group (EGL), one of New Zealand's largest freight forwarding companies. ELG currently operates 12 freight forwarding branches across New Zealand, Australia and the US, and also provides value adding warehouse and transport services to its customers, Toll said in a statement. ELG is principally focused on serving the import and export requirements of apparel and footwear retailers in Australia and New Zealand, with the majority of its revenues coming from trans-Tasman trade and Australian and New Zealand freight movements from Greater China.

KIA MOTORS Q3 PROFIT SOARS TO RECORD HIGH

SEOUL - Kia Motors Corp. said today its net profit jumped to an all-time high in the third quarter of this year, fueled by strong demand for new models and the weakness of the local currency. Net profit for the three months through September at Kia, South Korea's second-largest carmaker, soared to 401.9 billion won (US$337.7 million) from a loss of 22 billion won for the same period a year earlier, the company said in a regulatory filing.

INDIA'S FMCG SECTOR MAY GROW 20% IN JULY-SEP: PEAK CHAMBER

NEW DELHI - Riding on robust demand from rural India, the country's FMCG sector is likely to post growth of 20 per cent in July-September period this fiscal year, up from about 14 per cent in the previous quarter, peak chamber Assocham said. Despite the negative impact of scanty rainfall, demand from rural India is likely to remain robust complemented by a healthy rise in demand from urban areas, a study by the chamber said. It added that the FMCG market is set to more than double from the present US$14.7 billion to US$30 billion. Half of the sales of Hindustan Unilever (BSE:500696) and Dabur India (BSE:500096) can be attributed to rural India, it said, adding that Nestle India and GSK Consumer drive 25 per cent sales from rural areas.

S. KOREAN CO TO EXPORT 38,000 ELECTRIC CARS WORTH $400 MLN

SEOUL - CT&T, a South Korean electric vehicle maker, has signed contracts at the ongoing Tokyo Motor Show in Japan to export 38,000 electric cars worth US$400 million, the company said Thursday. Of the total, 7,000 cars will go to 2AM Group of the U.S., while MVP EV Group and EVI Group, also from the U.S., will take 5,000 each. RLM Group of Canada will also take 5,000. Japan's Nippon Automobile Fair Certificate Association will buy 3,000. GAEA Motors will buy 1,000 cars, and 2,000 will be shipped to a Taiwanese buyer. Initial exports will be completed cars, while semi knock-down exports will be made next year after assembly lines are built in importing countries, company officials said.

INDIA'S KEC INTL BAGS POWER EQUIPMENT ORDERS WORTH US$101 MLN

MUMBAI - Indian power transmission company KEC International (BSE:532714) said it has won orders aggregating to Rs 4.70 billion (US$101 million) from the Middle East and Africa to design, engineer and supply power distribution equipment. The company has secured orders from clients in Saudi Arabia and Chad for construction and supply of power distribution equipment, KEC International said in a filing to the Bombay Stock Exchange (BSE) Thursday. The orders include one worth Rs 3 billion from Saudi Electricity Company for the construction of a power transmission line in Riyadh, the filing said.

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