Thursday, August 26, 2010

Wah Seong posts 2Q operating losses of RM6.4m

KUALA LUMPUR: Wah Seong Corp Bhd posted a set of disappointing results in the second quarter ended June 30, 2010, with operating losses of RM6.44 million as it was affected by a decline in contracts in 2009.

According to the notes to the accounts issued on Wednesday, Aug 25, the operating profit of RM55.27 million in the previous corresponding quarter ended June 30, 2009,

Its revenue fell 33% to RM369.74 million from RM551.84 million.'' Pre-tax loss was RM3.74 million compared with pre-tax profit of RM47.37 million. But at net profit level it posted earnings of RM1.7 million, a contrast from the RM29.73 million a year ago.

'The group's revenue for the second quarter and six months period ended June 30, 2010 was RM369.7 million and RM779.4 million respectively, compared with RM551.8 million and RM988.5 million in the corresponding periods in 2009, representing a decrease of 33.0% and 21.2% respectively.

'The decline was mainly due to lower revenue generated in the main divisions as a result of lower number of projects awarded in the market during 2009 which affected performance in the period under review.

'The results before taxation for the second quarter and six months period ended 30 June 2010 was a loss of RM6.4 million and a profit of RM32.0 million respectively compared with a profit of RM55.3 million and RM110.3 million in the corresponding periods in 2009. This was mainly due to the lower revenue generated during the period under review,' it said.

On its outlook, Wah Seong said the general lack of or delay in award of projects experienced in the market during 2009 has affected the Group's performance during the period under review.

However, it said there was now an increase in bidding activities in the market and award of contracts are expected in the medium term. It still expected an overall positive performance for the financial year ending Dec 31, 2010.

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