Lower CPO Prices Pulls United Malacca Bhd Q1 Earning Down

PETALING JAYA: United Malacca Bhd posted a lower net profit of RM14.1mil for first quarter ended July 31 compared with RM27.5mil in the previous corresponding period. This was due to lower crude palm oil and palm kernel prices, which fell by 31% and 39% respectively, as well as reduced fresh fruit bunches (FFB) production by 13% following a change in cropping pattern. Its revenue fell to RM42.1mil versus RM70.6mil a year ago while earnings per share declined to 10.49 sen from 20.52 sen previously, the plantation company said in a filing with Bursa Malaysia. United Malacca, nonetheless, expects FFB production for the year ending April 30, 2010 to increase, thanks to additional areas coming on-stream for harvest and increasing yield from the young matured oil palms in the group’s estates. “Should the current level of CPO price be sustained, the group can expect another year of good performance,” it added. Source : The Star

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