Friday, August 12, 2011

BHIC 2Q net profit falls to RM1.39m on higher project costs

KUALA LUMPUR: BOUSTEAD HEAVY INDUSTRIES CORP []oration Berhad (BHIC) net profit for the second quarter ended June 30, 2011 fell to RM1.39 million from RM15.8 million earlier due to escalation in costs to complete its current projects.

It said on Friday, Aug 12 that its revenue for the quarter rose to RM120.76 million from RM104.47 million.

Earnings per share was 0.56 sen while net assets per share was RM1.71.

For the six months ended June 30, BHIC's net profit fell to RM11.47 million from RM31.47 million, on the back of revenue RM237.45 million.

In a statement Friday, BHIC managing director Tan Sri Ahmad Ramli Mohd Nor said the company's projects were in the advanced stage of completion, and moving forward, it expects to increase its order book.

'Furthermore, our joint venture companies are expected to continue providing positive contributions to the Group's bottom-line.

'As for our associate, the contract to build six new Littoral Combat Ships is in its advanced stage of preparations and negotiations are expected to commence soon,' he said.

Ahmad Ramli said BHIC would continue its cost reduction efforts, particularly in the optimisation of human resource costs through operational efficiency, and optimisation of material costs through its transformation strategy.

'We will continue in developing the functional and management skills of our staff through comprehensive training and development programs to achieve our key performance indicators,' he said.


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