Thursday, February 17, 2011

Daibochi 4Q earnings slip 31pct to RM4.5m

KUALA LUMPUR: Daibochi Plastic and Packaging Industry Bhd saw its earnings fall 31% to RM4.15 million from the RM6.05 million a year ago due to the sharp increases in polyester prices in 2010 for the packaging segment.

It said on Thursday, Feb 17 revenue rose 38.2% to RM75.46 million from RM54.58 million, while earnings per share were 5.5 sen compared with 8.04 sen.

Daibochi declared a fourth interim dividend of 3.50 sen, tax exempt, to be paid on March 30.

It said the higher revenue was 'due to increased sales from both the packaging and property development segments'.

'Although there was an increase in contribution from the property sector of RM2.271 million, the Group's profit before tax reduced by 20.5% to RM5.467 million as compared to RM6.878 million previously. This is due largely to the sharp increases in polyester prices that prevailed in 2010 for the packaging segment,' it said.

For the 12-months ended Dec 31, revenue rose 20.7% to RM267.75 million from RM221.788 million in FY09. Its earnings declined to RM18.18 million from RM22.76 million.

'Although there was an increase in contribution from the property sector of RM2.74 million, the group's profit before tax reduced by 12.2% to RM23.82 million compared to RM27.14 million previously. The reduction in the profit was due largely to the lower margins as a result of higher raw material prices that prevailed in 2010. In addition, the profit was also affected by foreign exchange loss and research and development expenses,' it said.

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