Tuesday, November 30, 2010

Kulim 3Q net profit jumps five-fold to RM284.66m

KUALA LUMPUR: Kulim (Malaysia) Bhd net profit for the third quarter ended Sept 30, 2010 surged five-fold to RM284.66 million from RM43.71 million a year ago mainly due to discontinuation gain of RM151.61 million net of tax from the disposal of its OleoChemicals group completed during the quarter.

Revenue for the quarter fell to RM871.11 million from RM1.44 billion a year ago. Earnings per share was 91.13 sen while net assets per share was RM11.46.

For the nine months ended Sept 30, Kulim's net profit jumped to RM564.6 million from RM263.86 million, on the back of revenue RM4.06 billion.

Reviewing its performance year-to-date, Kulim said its PLANTATION [] sector recorded significant revenue increase of 36.9% compared to the corresponding quarters in 2009.

The foods and restaurants business contributed 9.9% higher revenue compared to the corresponding quarters in 2009, it said.

On its current year prospects, Kulim said palm products prices strengthened significantly since the last report date and currently traded at above RM3,300 per mt.

This would have positive impact on plantation operation result for the final quarter of the year and into early quarters of 2011, it said.

The disposal proceeds received from the disposal of Natural Oleochimicals Sdn Bhd would contribute to significant savings on its borrowing costs, said Kulim.

It said the food and restaurants group was optimistic of sustaining the group's current performance for the full financial year 2010.

Kulim said it would continue to implement its plan of increasing revenue and profitability and developing better cost efficiencies and improving productivity at all its restaurants and manufacturing facilities.

It said under the Intrapreneur Venture Business (IV), the shipping operations under EA Technique and its newly acquired associate company, Orkim Sdn Bhd were expected to contribute positively to the Group's bottom line with the delivery on staggered basis beginning the first quarter of 2010 of all their 10 newly constructed vessels.

All of these vessels, scheduled to be fully delivered by the end of 2010, have secured long term charter contracts, it said.

'Based on the above generally positive outlook, the Board is confident of a better result for the final quarter 2010,' said Kulim.

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