KUALA LUMPUR: Higher overall selling prices for timber products and better performance for the PLANTATION []s business pushed TA ANN HOLDINGS BHD []'s first quarter earnings up by 232% to RM26.56 million from RM7.89 million a year ago.
It said on Friday, May 27 revenue rose 10.3% to RM181.44 million from RM179.93 million while earnings per share were 10.32 sen compared with 3.10 sen.
'The higher overall selling prices of timber products coupled with the increased tonnage of fresh fruit bunches sold at much higher prices improved the profit margin substantially and resulted in a surge in profit,' it said.
However, when compared with 4Q2011's revenue and net profit of RM220.19 million and RM29.38 million, the revenue and net profit for the quarter fell by 17.6% and 6.6% respectively.
'A drop in sales volume, in particular, log export and crude palm oil (CPO) sales, resulted in the lower revenue for quarter under review, but the higher selling prices increased the overall profit margin,' it said.
On the outlook for the current year, Ta Ann said demand for timber and timber products are projected to remain strong in 2011.
It said the reduced supply of logs in the market place and strong demand have pushed up the log price.'' For instance, average plywood selling price has risen by more than US$100 per cubic metre from 2010's average selling price of US$471 per cubic metre.
'Demand for plywood is expected to sustain in the year under review, with the improved housing starts and expected commencement of rebuilding of township damaged by tsunami and earthquake in Japan.
'Coupled with the expected higher production of fresh fruit bunches and CPO, the board is confident that the performance of the year 2011 will be better, barring unforeseen circumstances,' it said.
It said on Friday, May 27 revenue rose 10.3% to RM181.44 million from RM179.93 million while earnings per share were 10.32 sen compared with 3.10 sen.
'The higher overall selling prices of timber products coupled with the increased tonnage of fresh fruit bunches sold at much higher prices improved the profit margin substantially and resulted in a surge in profit,' it said.
However, when compared with 4Q2011's revenue and net profit of RM220.19 million and RM29.38 million, the revenue and net profit for the quarter fell by 17.6% and 6.6% respectively.
'A drop in sales volume, in particular, log export and crude palm oil (CPO) sales, resulted in the lower revenue for quarter under review, but the higher selling prices increased the overall profit margin,' it said.
On the outlook for the current year, Ta Ann said demand for timber and timber products are projected to remain strong in 2011.
It said the reduced supply of logs in the market place and strong demand have pushed up the log price.'' For instance, average plywood selling price has risen by more than US$100 per cubic metre from 2010's average selling price of US$471 per cubic metre.
'Demand for plywood is expected to sustain in the year under review, with the improved housing starts and expected commencement of rebuilding of township damaged by tsunami and earthquake in Japan.
'Coupled with the expected higher production of fresh fruit bunches and CPO, the board is confident that the performance of the year 2011 will be better, barring unforeseen circumstances,' it said.
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