Thursday, November 24, 2011

DRB-Hicom 2Q net profit dn 15.9% to RM104.2m, auto biz weighs

KUALA LUMPUR (Nov 24): DRB-HICOM BHD []'s earnings fell 15.9% to RM104.27 million in the second quarter ended Sept 30 from RM132.19 million a year ago due to the lower profit contribution from the associated companies following the automotive supply-chain disruption

It said on Thursday that it remained cautious about the outlook due to external factors and the impact of the severe Thai floods.

Its revenue fell 10.3% to RM1.476 billion from RM1.647 billion while earnings per share were 5.39 sen compared with 6.84 sen.

'The group achieved a higher pre-tax profit of RM164.06 million in the quarter ended Sept 30, 2011 as compared to RM146.31 million in the quarter ended June 30, 2011. The increase is mainly contributed by higher share of results of jointly controlled entities and recognition of share of results of POS MALAYSIA BHD [],' it said.

For the first half, earnings fell 32.6% to RM195.34 million from RM289.97 million. Revenue also reported a decline of 4.4% to RM3.059 billion from RM3.201 billion, mainly due to lower sales recorded by companies in the automotive sector.

DRB-Hicom said in the previous corresponding period, the group had recognised a one-off exceptional item, that is negative goodwill of RM71.22 million arising from accretion of equity interest in EON Bhd. It added that excluding this exceptional item, the pre-tax profits would have been RM338.43 million for the period ended Sept 30.

'On this comparison, the current financial period's operating profits had dropped by RM28.06 million. The reduction was mainly attributable to lower share of results of associated companies,' it said.

DRB-Hicom said the automotive and automotive components supply constraints arising from the flood situation in Thailand compounded with the unfavourable exchange rate movements are expected to affect the group's automotive business.

However, it said the group's services and property, asset management and CONSTRUCTION [] businesses are expected to remain stable on the back of the moderate GDP growth for 2011 supported by domestic consumer demand.

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