Monday, November 21, 2011

Latexx 3Q net profit falls 27.8% to RM12.73m

KUALA LUMPUR (Nov 21): LATEXX PARTNERS BHD [] net profit for the third quarter ended Sept 30, 2011 fell 27.8% to RM12.73 million from RM17.63 million a year earlier, due mainly to the persistently high raw material prices and the weaker US dollar.

The company said on Monday that its revenue for the quarter slipped 6.2% to RM121.81 million from RM129.88 million in 2010.

Earnings per share decreased to 5.17 sen compared to 8.19 sen in 2010, while net assets per share was RM1.23.

Latex declared a first interim tax exempt dividend of 2.5 sen per share of 50 sen each for the financial year ending Dec 31, 2011 to be paid on Jan 3, 2012.

For the nine months ended Sept 30, Latexx's net profit fell 28.1% to RM43.06 million from RM59.89 million in 2010, while its revenue was down 10.1% to RM350.92 million from RM390.53 million.

Reviewing its performance, Latexx said the normalising demand, higher raw material prices of both natural rubber and nitrile latex were the main reasons for the contraction in the revenue and profit margin for the third quarter.

On its prospects, Latexx said although the industry outlook remained to be challenging in the near to midterm, the group would continue to deliver positive performance.

The company said that NR latex price has softened since June 2011 and the exchange rate of the US dollar had also improved.

On the other hand, nitrile latex price has peaked during the period of 3Q11 and has shown sign of softening recently, it said.

Despite the signs of improvement of the business environment, Latexx said it would still be cautious and take all possible measures to continue to remain as a competitive glove manufacturer.

Latexx said it would continue to grow its business by focusing on the Nitrile range, especially on the non- medical sectors, i.e. personal care, food handler, industrial, etc. to widen and diversify the revenue base.

'The group will also continue to broaden its customer base by focusing more on other countries besides the affluent markets.

'Fully embracing the industry's environment with the challenges ahead, the group is confident that the current undertakings and strategies of the group is on the right track and will lead the Group to attain the organisational and earnings goal,' it said.



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