Sime Darby Posts RM166mil Q3 Net Profit

Fintan Ng

Revenue contribution from plantation division down Kuala Lumpur – Sime Darby Bhd reported a net profit of RM165.7mil for the third quarter ended March 31, 85% lower than the previous corresponding period on lower contribution from the group’s plantation division. Revenue for the quarter came in at RM7.47bil. For the nine-month period, net profit was 50% lower at RM1.33bil than the same period a year ago while revenue came in 6% down at RM23.47bil. Basic earnings per share stood at 2.51 sen for the quarter under review. President and group chief executive Datuk Seri Ahmad Zubir Murshid said the outlook for the remainder of the group’s financial year would be challenging. “It will not be as good as last year but we’ll be happy with the current performance,” he told a media briefing yesterday. He said revenue contribution from the plantation division, although down, was still strong at over 70% to group revenue.
Zubir said the fall in the contribution of the division was due to lower average crude palm oil (CPO) prices and lower production as a result of tree stress. Zubir said the average price for CPO in the third quarter was RM2,100 per tonne. He refused to speculate on the CPO price but hoped it would remain at the current level. The CPO three-month futures closed RM76 lower at RM2,445 per tonne yesterday. On forward sales of CPO, Zubir said to date the group had managed to sell at an average price of RM2,127 per tonne on a 2+1 month basis. He said the economic uncertainty had also taken a toll on the industrial division’s order book, where 40% of the orders had been cancelled for periods of 20 months and beyond. “Going forward, we’ve an order book that will last for 12 months,” Zubir said, adding that the motor division should be able to meet projections for the year based on a recovery in the local market in mid-year.]]>

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