Friday, December 23, 2011

TA Enterprise 3Q net profit dips 26.57% to RM11.73m on higher forex loss

Larger Smaller Reset KUALA LUMPUR (Dec 23): TA ENTERPRISE BHD [] net profit for the third quarter ended Oct 31, 2011 fell 26.57% to RM11.73 million from RM15.98 million a year earlier, weighed mainly by the increase in foreign exchange translation losses recorded in TA Global Group on financing activities.

The company said on Friday that its revenue for the quarter rose 12.9% to RM173.1 million from RM153.29 million in 2010.

Earnings per share for the quarter fell to 0.69 sen from 0.93 sen, while net assets per share was 92 sen.

For the nine months ended Oct 31, TA Enterprise posted net profit RM71.69 million compared to RM49.1 million while revenue rose to RM503.82 million from RM439.19 million in 2010.

Reviewing its performance, TA Enterprise said it recorded lower contributions from both the stockbroking arm and TA Global Group in the current quarter, as compared to the previous year's corresponding period.

Although TA Global Group enjoyed higher interest income from financial receivables, and higher hotel profits in line with the increase in the number of hotels in operation subsequent to the group's hotel acquisition exercises, the group recorded lower contribution from the property development arm, and high foreign exchange translation losses, it said.

On its prospects, TA Enterprise said global economic risk continued to weigh on regional growth prospects given the slow economic recovery in the US and sovereign-debt woes in Europe.

'Our local stock market activities have slowed down in the past few months but we anticipate market sentiments to moderately improve in the last quarter.

'Contributions from the group's property divisions will continue to be positive despite growing uncertainties in the global economic landscape,' it said.

The company said domestic economy was expected to be resilient supported by accelerated government spending under the Economic Transformation Programme.

'Barring any unforeseen circumstances, the group is expected to show satisfactory performance in the current financial year,' it said.




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