Tuesday, August 23, 2011

MMC Corp 2Q net profit down 8.1% to RM82.06m

KUALA LUMPUR: MMC CORPORATION BHD [] net profit for the second quarter ended June 30, 2011 fell 8.1% to RM82.06 million from RM89.28 million a year earlier, due mainly to lower contribution from the energy and utilities division resulting from lower gross profit margin.

It said on Tuesday, Aug 23 that revenue for the period increased to RM2.42 billion from RM2.31 billion in 2010. Earnings per share was 2.69 sen compared to 2.93 sen a year earlier, while earnings per share was RM2.18.

For the six months ended June 30, MMC's net profit rose to RM125.09 million from RM122.51 million in 2010, on the back of revenue RM4.65 billion.

Reviewing its performance, MMC said the energy and utilities division posted profit 26.9% or RM121.8 million higher due increase in volume of gas sold, lower other operating expenses, improved associates performance and lower finance cost as a result of loan repayments during the period.

It said the higher profit recorded from its transport & logistics division by RM54.7 million or 66.4% was mainly driven by the increase in tonnage and throughput volume coupled with lower operating costs.

It also said the engineering and CONSTRUCTION [] division's performance was better by RM50.9 million or 75.9% mainly due to the absence of profit revisions for the double track project and lower provision on project losses of Zelan Berhad, an associate company of the group.

Meanwhile, it said contribution from its corporate and others division was lower by RM59.7 million or 71.8% due to lower gain on disposal of investment compared against the previous corresponding financial period coupled with higher finance cost.

On its prospects, MMC said that in line with the improvement in its overall businesses, the company expects the its financial results for the current financial year ending Dec 31, 2011 to be better than those achieved in the last financial year ended Dec 31, 2010.


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