BYD's first-half earnings plummet

First-half profits for Chinese auto and battery maker BYD (002594.SH, 1211.HKG) plummeted 94% due to weaker demand for its cars, solar cells and mobile phone batteries, Bloomberg reported. Net earnings fell to US$2.6 million (RMB16.3 million) in the first six months of the year, compared to US$43.3 million in the same period in 2011, while overall sales edged up 0.2% to US$3.5 billion. BYD supplies parts for mobile phones to Nokia and HTC, both of which saw their market share decline in the first half. The weak European economy dragged down demand for solar cells, while BYD’s vehicle deliveries declined in part due to increased competition from foreign car makers operating in China. All three segments of BYD’s business will likely remain weak, the company said in its Monday earnings report.