Shanghai Automotive profits fall

Shanghai Automotive Co. announced a drop in third quarter profits of 9.1%, attributing the dip to increasing competition, the rising cost of raw materials and the falling price of auto parts, the Wall Street Journal reported. Net profit fell from US$46.38 million in 2004 to US$42.2 million this year. Profits hit their lowest ebb in the first half of 2005, falling 67.6% compared to the same period in 2004, but have recovered somewhat since, averaging a fall of only 55% for the first nine months of 2005, as against the same period last year.