KUALA LUMPUR: Furniture maker JAYCORP BHD []'s net profit fell 67% to RM705,000 in the third quarter ended April 30, 2011 from RM2.11 million a year ago and it expects the coming year to be challenging due to the global uncertainties.
It said on Wednesday, June 29 its revenue declined 17.7% to RM43.54 million from RM52.91 million. Earnings per share were 0.51 sen compared with 1.58 sen.
'The decrease in profit is largely due to the weakening of US dollar, increase in production cost and sluggish economy condition in the importing countries. Manufacturers in Malaysia are facing very challenging times especially in the furniture industry accepting orders with reduced gross margin in order to cover fixed cost and to remain competitive in the industry,' it said.
For the nine-month period, net profit was RM3.06 million, down 74.7% from RM12.10 million while revenue slipped 17% to RM140.57 million from RM169.44 million.
'The outlook for the coming year will continue to be challenging with the global uncertainties especially in the Middle East, Europe and the US. The group is concerned with the strengthening of the ringgit and the labour market in the developed nations continuing to remain weak, thus resulting in poor consumer confidence,' it said.
It said on Wednesday, June 29 its revenue declined 17.7% to RM43.54 million from RM52.91 million. Earnings per share were 0.51 sen compared with 1.58 sen.
'The decrease in profit is largely due to the weakening of US dollar, increase in production cost and sluggish economy condition in the importing countries. Manufacturers in Malaysia are facing very challenging times especially in the furniture industry accepting orders with reduced gross margin in order to cover fixed cost and to remain competitive in the industry,' it said.
For the nine-month period, net profit was RM3.06 million, down 74.7% from RM12.10 million while revenue slipped 17% to RM140.57 million from RM169.44 million.
'The outlook for the coming year will continue to be challenging with the global uncertainties especially in the Middle East, Europe and the US. The group is concerned with the strengthening of the ringgit and the labour market in the developed nations continuing to remain weak, thus resulting in poor consumer confidence,' it said.
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