Proton profitable but sees rocky road TEAMCAR - Malaysia's biggest carmaker, state-controlled Proton Holdings, reported a fourth-quarter net profit in line with expectations on Tuesday, but painted a bleak outlook.

The company, which suffered heavy losses in the first half of its year to end-March, highlighted tough competition, dampened consumer demand at home and increasing energy costs.

Proton reported a fourth-quarter net profit of 127.2 million ringgit, compared with a loss of 63.9 million ringgit a year earlier. Sales slid 20 percent.

Proton, owned 43 percent by state investment arm Khazanah Nasional, led a sheltered life before the government began lowering tariffs on foreign cars under an Asian free-trade pact.

Its market share is in decline as foreign-made cars become a more attractive option to their locally made rivals, often blamed for shoddy parts and service quality.

Eager to boost its small export revenue, Proton said recently that it and China's Chery Automobile had agreed to jointly study plans to build and sell each other's cars in the two countries and elsewhere in southeast Asia.  ¶ 5:38 PM