Thursday, February 17, 2011

Wah Seong 4Q earnings dn 28.9pct to RM24.76m on-yr on fewer projects

KUALA LUMPUR: Wah Seong Corp Bhd's earnings fell 28.9% to RM24.76 million in the fourth quarter ended Dec 31, 2010 from RM34.84 million a year ago due to the lower number of projects and unfavourable effect of foreign exchange fluctuations.

It said on Thursday, Feb 17 revenue fell 12.7% to RM397.23 million from RM455.07 million while earnings per share were 3.2 sen compared with 4.5 sen. It proposed dividend of 2.5 sen per share.

For the financial year ended Dec 31, 2010, the net profit fell 53.8% to RM55.98 million from RM121.32 million in FY09. Revenue fell 21.9% to RM1.523 billion from RM1.950 billion.

Wah Seong said the decline was due to lower revenue generated in the main divisions as a result of lower number of projects awarded in the market during 2009 and the unfavourable effect of foreign exchange fluctuations.

At the pre-tax level, it said it improved from RM18.9 million in the third quarter to RM35.26 million in the fourth quarter due to increasing activities in the main divisions of the group.

It said following the increase in bidding activities in the market, the group managed to secure new projects in the current quarter.

'The increasing trend in the oil majors' capital investment activities is expected to have a positive impact on the group's future performance. The group expects overall performance to remain positive for the financial year ending Dec 31, 2011,' it said.

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