23/08/2012 (Bernama) - Kenanga Research expects Sime Darby's core earnings to hit a historical high of RM4.02 billion in its 2012 financial year earnings.

This was in line with the RM4 billion consensus estimate, it said.

Sime Darby will release its FY12 earnings results on Aug 29.

"We also expect the year-on-year core earnings growth to be decent at about four per cent, mainly driven by the 30 per cent earnings before interest and tax growth in its industrial segment to RM1.36 billion," it said.

Strong demand in mining, logging and construction sectors in Malaysia, Singapore and Australasia has also boosted its earnings, it said in a research note.

It said plantation division earnings should be flattish in FY12 as the higher crude palm oil (CPO) prices fetched would be offsetted by the overall three per cent decline in fresh fruit bunches to 9.76 million metric tonnes.