Thursday, August 25, 2011

DHB-Hicom 1Q net profit falls 42% to RM91.07m

KUALA LUMPUR: DRB-HICOM BHD [] net profit for the first quarter ended June 30, 2011 fell 42% to RM91.07 million from RM157.78 million a year earlier on lower share of results of associated companies namely Honda Malaysia Sdn Bhd due to shortages of CKD packs following the Japan earthquake/tsunami in March 2011.

It said on Thursday, Aug 25 that its revenue for the quarter rose 1.93% to RM1.58 billion from RM1.55 billion in 2010.

Earnings per share declined to 4.71 sen from 8.16 sen in 2010, while net assets per share was RM2.63.

DRB-Hicom said that in the previous corresponding period, the group had recognised a one-off exceptional gain i.e. negative goodwill of RM71.22 million, arising from the accretion of equity interest in EON Bhd. Hence, profit reported during the period was RM223.48 million.

Reviewing its performance, DRB-Hicom group managing director Datuk Seri Mohd Khamil Jamil said the recent downgrading of the United States sovereign rating, European debt crisis, and the continuous increase in inflation would potentially affect the Malaysian economy.

Against this challenging background, the group would continue to pursue various cost management initiatives and review the group's business approaches to mitigate any negative and adverse impact on the group's financial results for the financial year ending March 31, 2012, he said.

Mohd Khamil however said that he was positive that the effects of the tragedy in Japan would not be a prevailing factor in the Group's future performances.

'This like most disasters was unexpected and unavoidable. Nevertheless, DRB-Hicom with its diverse business background is built to withstand various challenges thrown in its way.

'Despite the dip in the automotive sector's revenue, I am proud to say that the strategic re-alignment in our services sector over the last three years enabled the company to hold strong despite cyclical challenges,' he said.

Mohd Khamil said that with the completion of the acquisition of Pos Malaysia on July 1, 2011, it also meant that the group would be able to further push synergistic opportunities within the group and that this would eventually contribute positively to its future earnings.


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