KUALA LUMPUR (Nov 6): Cycle & Carriage Bintang Bhd (CCB) slipped into the red in the third quarter ended Sept 30, 2017 (3QFY17), posting a net loss of RM3.26 million, compared to a net profit of RM8.29 million in the same period a year ago, due to losses in its retail operations.

Quarterly revenue dropped 12.79% to RM331.61 million from RM380.26 million on difficult trading conditions that led to reduction in unit sales and earnings, the group said in a filing with Bursa Malaysia.

For the first nine months of FY17, CCB said net profit plunged 83.94% to RM6.02 million, from RM37.46 million a year ago. Revenue fell 7% to RM1.04 billion from RM1.12 billion.

Reviewing the year-to-date operations, CCB chairman Haslam Preeston said the trading of Mercedes-Benz cars recorded a loss of RM5.2 million, compared with a profit of RM26.3 million in the previous year.

“This reduction was due primarily to discounting pressure and lower volumes, with demand for key models being less than expected,” Preeston said, observing that units sales have declined 13% and the model mix has shifted from S-Class to the lower margin GLA and GLC classes.

“The Group’s after-sales division, however, continued to perform well, benefiting from increased throughput,” Preeston added.

Going forward, Preeston said that with little improvement in the trading environment expected, the last quarter of the year will remain very challenging.

With 12 outlets across the country, CCB holds a 49% stake in Mercedes-Benz Malaysia Sdn Bhd.

CCB’s share price rose three sen or 1.36% to RM2.24 today,  valuing the group at RM225.67 million.