MARKET DEVELOPMENT
KL Kepong 3Q Profit Down 18% To RM189M
KL Kepong 3Q Profit Down 18% To RM189M
21/08/2013 (The Star) - Kuala Lumpur Kepong Bhd’s (KLK) earnings fell 18% for its third quarter ended June 30, 2013 to RM189.16mil from RM233mil a year ago due to weaker selling prices of commodities and higher crude palm oil and rubber production cost.
KLK said on Tuesday its revenue was down 16% to RM2.176bil from RM2.603bil a year ago while earnings per share stood at 17.80 sen from 21.90 sen a year ago.
For its year to date, its profit fell 16% to RM659.73mil from RM788.97mil a year ago while revenue was down 17% to RM6.732bil from RM8.15bil a year ago.
In a Bursa filing, it said its manufacturing sector's profit slipped 12.1% to RM69.mil on the back of a 10.6% drop in revenue to RM1.17 billion.
“Changes in fair value on outstanding derivative contracts had resulted in an unrealised loss of RM16.9mil,” it said.
It added its oleochemical division posted a 13% reduction in profit to RM72.9mil whilst the other manufacturing units incurred a lower loss of RM3.8mil.
However its property sector's profit surged 56.3% to RM22.9mil with the increase in profit recognition from the development in Bandar Seri Coalfields, Sungai Buloh.
On future prospects, KLK said the slow recovery of the global economy and the prolonged recession in the eurozone have affected demand and prices of commodities.
“In view of the above and also the results achieved to-date, the group expects the plantations profit to be much lower than that of the last financial year.
“The oleochemical division is expected to maintain its current performance on the initiatives of operational efficiencies and productivity improvements despite facing competitive pressures from increasing world capacities,” it said.
The group added its property sector will continue to recognise the progressive development profits from its on-going Bandar Seri Coalfields project in Sungai Buloh.
“Overall, the group profit for the current financial year will be lower than that of the previous financial year,” it said.
KLK said on Tuesday its revenue was down 16% to RM2.176bil from RM2.603bil a year ago while earnings per share stood at 17.80 sen from 21.90 sen a year ago.
For its year to date, its profit fell 16% to RM659.73mil from RM788.97mil a year ago while revenue was down 17% to RM6.732bil from RM8.15bil a year ago.
In a Bursa filing, it said its manufacturing sector's profit slipped 12.1% to RM69.mil on the back of a 10.6% drop in revenue to RM1.17 billion.
“Changes in fair value on outstanding derivative contracts had resulted in an unrealised loss of RM16.9mil,” it said.
It added its oleochemical division posted a 13% reduction in profit to RM72.9mil whilst the other manufacturing units incurred a lower loss of RM3.8mil.
However its property sector's profit surged 56.3% to RM22.9mil with the increase in profit recognition from the development in Bandar Seri Coalfields, Sungai Buloh.
On future prospects, KLK said the slow recovery of the global economy and the prolonged recession in the eurozone have affected demand and prices of commodities.
“In view of the above and also the results achieved to-date, the group expects the plantations profit to be much lower than that of the last financial year.
“The oleochemical division is expected to maintain its current performance on the initiatives of operational efficiencies and productivity improvements despite facing competitive pressures from increasing world capacities,” it said.
The group added its property sector will continue to recognise the progressive development profits from its on-going Bandar Seri Coalfields project in Sungai Buloh.
“Overall, the group profit for the current financial year will be lower than that of the previous financial year,” it said.