Thursday, November 17, 2011

Kossan 3Q net profit falls 17.2% to RM23.64m

KUALA LUMPUR (Nov 17): KOSSAN RUBBER INDUSTRIES BHD [] net profit for the third quarter ended Sept 30, 2011 fell 17.2% to RM23.64 million from RM28.55 million a year earlier, due mainly to higher cost of latex.

The company said on Thursday, Nov 17 that revenue for the quarter, however, improved to RM278.53 million from RM275.63 million.

Earnings per share was 7.39 sen compared to 8.93 sen a year earlier, while net assets per share was RM1.50.

Kossan declared a first interim dividend of three sen per share tax-exempt for the financial year ending Dec 31, 2011 to be paid to on Dec 20, 2011.

For the nine months ended Sept 30, Kossan's net profit fell to RM67.54 million from RM88.94 million, despite an increase in revenue to RM810.59 million from RM794.89 million in 2010.

Reviewing its performance, Kossan said the pre-tax profit margin increased from 9.67% to 11.17% in the current quarter mainly due to lower cost of natural latex which dropped an average of 10.20% from RM 9.87 to RM 8.91 in the current quarter.

On its prospects, Kossan said with the recent drop in rubber prices coupled with higher demand for both technical rubber products and gloves, the company was positive over its performance in the coming quarters.

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