Wednesday, May 18, 2011

JCY 2Q net profit slumps 81% to RM12.46m

KUALA LUMPUR: JCY International Bhd net profit for the second quarter ended March 31, 2011 slumped 81% to RM12.46 million from RM65.88 million a year earlier due mainly to increase in the cost of production resulting from increase in the cost of raw materials like aluminium and stainless steel and also increase in labour cost.

Revenue for the quarter fell 27.7% to RM397.43 million from RM549.69 million. Earnings per share was 0.61 sen while net assets per share was 43.08 sen.

For the six months ended March 31, JCY's net profit tumbled to RM19.97 million from RM143.36 million, while revenue fell to RM836.34 million from RM1.08 billion in 2010.

Reviewing its performance, JCY said on Wednesday, May 18 that the lower revenue for current quarter was due mainly to depreciating USD against Ringgit and lower volume of components sold as a result of weakening global demand for Hard Disk Drive (HDD).

On its prospects, JCY said that the HDD industry was going through another round of consolidation at its customers' level.

'Our major customers continue to increase their global markets shares as a result of the recent merger and acquisitions.

'However, the strengthening of Malaysia Ringgit and stortage of labour in Malaysia couples with the increases in the raw material prices will continue to affect the profitability of the HDD component manufacturers,' it said.

In addition, the HDD components shortages due to the recent Japanese Tsunami may affect the HDD output too, said JCY.

'The group will continue to intensify efforts to improve operational efficiency and cost management,' it said.




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