Wednesday, August 25, 2010

IJM Corp 1Q earnings up 27% to RM90.05m

KUALA LUMPUR: IJM Corp Bhd posted a 27% increase in earnings at RM90.05 million for the first quarter ended June 30, 2010 compared with net profit of RM70.82 million a year ago, despite lower earnings from the CONSTRUCTION [] division.

IJM Corp said on Wednesday, Aug 25 that operating revenues were RM986.08 million, down 15.1% from RM 1.16 billion a year ago. Earnings per share were 6.76 sen versus 5.39 sen.

'Whilst construction works at new major projects such as the Grand Hyatt in Kuala Lumpur and new India projects are expected to go full-swing later in the current financial year, the delays in some of the works of overseas projects and the substantial completion of major construction projects in the 4th quarter of the last financial year were the primary contributory factors towards the decline,' it said.

IJM Corp said lower selling prices and deliveries of building materials also resulted in the group's industry division reporting a 19.8% decline in revenue.

However, operating profit before tax for the current quarter rose by 44.6% to RM179.06 million compared to RM123.86 million due to higher profits posted by the group's property, PLANTATION [] and infrastructure divisions.

These divisions reported higher profits, boosted by property sales, higher crude palm oil prices and added contribution from the group's 20%-owned Gautami Power Plant in India that was commissioned in June 2009 respectively.

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