SINGAPORE: Wilmar International, the world's biggest listed palm oil PLANTATION [] firm, posted a worse-than-expected 60 percent fall in its third quarter as margins weakened but said it remained bullish about the future.
"Despite the weak third quarter performance, the group remains positive on its long-term prospects," Chairman and CEO Kuok Khoon Hong said in a statement on Wednesday, Nov 10.
Wilmar said its oilseeds and grains business suffered a pretax loss of $37.1 million, despite a 28 percent rise in sales volume, due to "weaker margins and less timely purchases of raw materials".
Wilmar, which has a market capitalisation of $33.98 billion, runs palm oil plantations in Indonesia and Malaysia and a number of processing facilities in China for various oils and grains.
The firm, controlled by the family of Malaysian billionaire Robert Kuok, has diversified into sugar and earlier this week got approval from Australia's Foreign Investment Review Board for its $1.5 billion purchase of Sucrogen from CSR Ltd.
Wilmar earned $259 million in the quarter ended September, down from $653 million a year ago when it made an exceptional gain of $167 million from the sale of new shares in its China unit.
The result was lower than an average forecast of $467 million from a Reuters survey of three analysts.
Nomura's Tanuj Shori, who had the lowest profit forecast for Wilmar among the analysts polled, said before the result that he was, however, bullish about the firm.
"2011 earnings growth should still be strong, driven by volumes pick up from a low margin base this year, higher rice or flour contribution and Sucrogen," Shori said in a report before the earnings.
"Wilmar is one of the best ways to gain exposure to the fastest growing consumption economies."
Wilmar's shares have gained about 6 percent so far this year, underperforming the 14 percent rise of the benchmark Singapore index. - Reuters
"Despite the weak third quarter performance, the group remains positive on its long-term prospects," Chairman and CEO Kuok Khoon Hong said in a statement on Wednesday, Nov 10.
Wilmar said its oilseeds and grains business suffered a pretax loss of $37.1 million, despite a 28 percent rise in sales volume, due to "weaker margins and less timely purchases of raw materials".
Wilmar, which has a market capitalisation of $33.98 billion, runs palm oil plantations in Indonesia and Malaysia and a number of processing facilities in China for various oils and grains.
The firm, controlled by the family of Malaysian billionaire Robert Kuok, has diversified into sugar and earlier this week got approval from Australia's Foreign Investment Review Board for its $1.5 billion purchase of Sucrogen from CSR Ltd.
Wilmar earned $259 million in the quarter ended September, down from $653 million a year ago when it made an exceptional gain of $167 million from the sale of new shares in its China unit.
The result was lower than an average forecast of $467 million from a Reuters survey of three analysts.
Nomura's Tanuj Shori, who had the lowest profit forecast for Wilmar among the analysts polled, said before the result that he was, however, bullish about the firm.
"2011 earnings growth should still be strong, driven by volumes pick up from a low margin base this year, higher rice or flour contribution and Sucrogen," Shori said in a report before the earnings.
"Wilmar is one of the best ways to gain exposure to the fastest growing consumption economies."
Wilmar's shares have gained about 6 percent so far this year, underperforming the 14 percent rise of the benchmark Singapore index. - Reuters
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