MARKET DEVELOPMENT
Sime's Q1 Pre-tax Profit Falls To RM714.21 Million
Sime's Q1 Pre-tax Profit Falls To RM714.21 Million
30/11/2013 (Bernama) - Sime Darby Bhd's pre-tax profit for the first quarter ended Sept 30, 2013 fell to RM714.21 million from RM1.28 billion in the same period last year.
Revenue slipped to RM10.76 billion from RM11.741 billion previously, Malaysia's biggest conglomerate said in a filing to Bursa Malaysia Friday.
Sime said the 44 per cent fall in pre-tax profit was due to the challenging market conditions in most of the businesses it operated.
For the plantation division, the lower profit was mainly due to weaker average crude palm oil (CPO) price realised and lower fresh fruit bunches (FFB) production during the quarter, it said.
Sime said the downtrend was in line with the industry which was also negatively impacted by the lower CPO prices and a decline in FFB output due to a shift in cropping patterns in certain areas.
On property division, Sime said, profit before interest and tax (PBIT) eased to RM65.5 million in the quarter under reviewed, from RM69.5 million in the same quarter last year.
"This is partly due to residential launches that were scheduled for the first quarter 2014 being accelerated to the second half of the previous financial year to take advantage of the stronger market condition," it said.
Sime said its industrial division registered a lower PBIT of RM327.2 million during the quarter, against RM382.4 million previously, due to lower equipment sales to the mining sector in Australasia.
The group announced its key performance indicators for financial year ending June 30, 2014, with a target net profit after tax and non-controlling interests of RM2.8 billion.
It also included a return on average shareholders' funds of 10 per cent.
Meanwhile, Sime said the draft consortium agreement between its wholly-owned unit, Sime Darby Plantation Sdn Bhd, and Agensi Inovasi Malaysia, was still pending for finalisation by the respective parties.
Revenue slipped to RM10.76 billion from RM11.741 billion previously, Malaysia's biggest conglomerate said in a filing to Bursa Malaysia Friday.
Sime said the 44 per cent fall in pre-tax profit was due to the challenging market conditions in most of the businesses it operated.
For the plantation division, the lower profit was mainly due to weaker average crude palm oil (CPO) price realised and lower fresh fruit bunches (FFB) production during the quarter, it said.
Sime said the downtrend was in line with the industry which was also negatively impacted by the lower CPO prices and a decline in FFB output due to a shift in cropping patterns in certain areas.
On property division, Sime said, profit before interest and tax (PBIT) eased to RM65.5 million in the quarter under reviewed, from RM69.5 million in the same quarter last year.
"This is partly due to residential launches that were scheduled for the first quarter 2014 being accelerated to the second half of the previous financial year to take advantage of the stronger market condition," it said.
Sime said its industrial division registered a lower PBIT of RM327.2 million during the quarter, against RM382.4 million previously, due to lower equipment sales to the mining sector in Australasia.
The group announced its key performance indicators for financial year ending June 30, 2014, with a target net profit after tax and non-controlling interests of RM2.8 billion.
It also included a return on average shareholders' funds of 10 per cent.
Meanwhile, Sime said the draft consortium agreement between its wholly-owned unit, Sime Darby Plantation Sdn Bhd, and Agensi Inovasi Malaysia, was still pending for finalisation by the respective parties.