IOI Corp's Pre-tax Profit Jumps 65 Per Cent To RM2.55 Billion

IOI Corporation Bhd reported a 65 per cent jump in its pre-tax profit of RM2.55 billion for the financial year ended June 30, 2010 from RM1.55 billion last year.

The higher profit was mainly due to unrealised translation gain on long term US dollar denominated borrowing of RM395.8 million from last year’s unrealised loss of RM315.3 million, it said in its financial report released here today.

IOI said it was also due to no further impairment loss at the jointly controlled property entity in Singapore during the financial year, compared with last year’s loss of RM258.6 million.

The group’s revenue however was lower at RM12.54 billion compared with RM14.6 billion previously.

IOI said the plantation segment reported a 31 per cent decrease in operating profit to RM1.13 billion for the year compared to RM1.64 billion last year.

It said the lower operating profit was due mainly to lower average crude palm oil (CPO) price realised of RM2,372 per tonne versus RM2,831 per tonne in the previous year and lower fresh fruit bunches (FFB) production of 3.405 million tonnes against 3.62 million tonnes previously.

The property segment performed better, with operating profit 29 per cent higher at RM602.9 million versus RM467 million the last financial year.

The higher profit was attributed mainly to an overall increase in sales.

For the fourth quarter ended June 30, 2010, its pre-tax profit was higher at RM618 million from RM612.8 million in the same period last year, while revenue was lower at RM3.06 billion from RM3.12 billion.

Earnings per share rose to 8.57 sen from 8.21 sen.

IOI proposed a dividend of 10 sen per share for the year. This compared with two sen a year ago.

For the fourth quarter, IOI said the plantation segment saw a six per cent increase in operating profit to RM274.5 million as compared to RM259.3 million in the same quarter last year.

It attributed the increase to improved CPO prices.

Average CPO price in the fourth quarter was RM2,504 per tonne compared with RM2,455 for the same quarter last year.  Source: Bernama

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