Friday, August 20, 2010

JCY posts flat earnings, weak consumer spending weighs

KUALA LUMPUR: JCY International Bhd posted flat earnings in the third quarter ended June 30, 2010 as the hard disk drive (HDD) shipments slowed down following a weak recovery in consumer spending in the US and Europe and the debt crisis in Europe.

It announced on Friday,Aug 20 that net profit was RM55.60 million versus RM55.38 million a year ago. Revenue was marginally higher at RM480.79 million versus RM480.67 million. Earnings per share were 2.72 sen compared with 2.71 sen.

JCY said the turnover of RM480.8 million and pretax profit of RM55.9 million for the third quarter was a decline of 12.5% and 15.2% respectively when compared with the second quarter ended March 31, 2010.

"The strengthening of the ringgit against the US dollar and the reduction in average selling price due to slowdown of the consumers' demand continue to contribute to the decrease in our profit," it said.

JCY said its customers also demanded higher volume of the lower end products which commanded a lower selling prices and contribution for its profits for the quarter ended June 30.

For the nine-month period, net profit rose 48.7% to RM198.94 million compared with RM133.78 million in the previous corresponding period. Revenue increased 24% to RM1.56 billion from RM1.25 billion.

"Our group continues to focus in our core business of supplying quality mechanical components for the HDD industry. The
group has also started supplying our HDD components to our new Korean and Japanese customers for this coming quarter," it said.

The company said barring any unforeseen circumstances, it expected the group's performance to be favourable for the financial year ending Sept 30.




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