Monday, February 14, 2011

#Flash* Supermax 4Q earnings fall 24.8pct on high latex prices, unfavourable forex

KUALA LUMPUR: Supermax Corp Bhd saw its earnings decline by 24.8% from RM43.54 million to RM32.72 million in the fourth quarter ended Dec 31, 2010 due to the continuous high latex prices and unfavourable exchange rates.

The rubber glove maker said on Monday, Feb 14 its revenue rose 18.4% from RM196.42 million to RM232.67 million. Its earnings per share were 9.62 sen versus 16.22 sen. It proposed a dividend of five sen per share.

The 4Q earnings also showed a decline of 14.3% from the third quarter net profit of RM38.14 million.

'The rising latex costs and the weakening of the US dollar can pose a challenge but nevertheless manageable as management has the experience to tackle the headwinds and minimise their effects,' it said.

Supermax said as glove prices increase in tandem with latex price increase and the management had taken steps to adjust glove price on a more regular basis to pass through the cost increases.

For the financial year ended Dec 31, 2010, its earnings rose 32.8% from RM126.58 million to RM168.16 million while revenue increased 14.8% from RM803.63 million to RM932.25 million.

Supermax said the group managed to achieve the profit guidance for FY10 as set out early last year despite the difficult operating environment.

'Moving forward, we expect demand to remain strong, driven by new usages for gloves, rising demand from developing countries that are growing more affluent and spending more on healthcare and more and more countries regulating their healthcare industry,' it said.


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