28/08/2012 (The Sun Daily) - IOI Corp Bhd saw its net profit for the fourth quarter ended June 30, 2012 (Q4) fall 27% to RM401.6 million from RM547.8 million a year ago, mainly due to lower profit from its plantation and resource-based manufacturing segments as well as translation loss on foreign currency denominated borrowings.

Revenue slipped 13% to RM3.8 billion from RM4.3 billion.

"The lower profit in the plantation segment is partly due to lower fresh fruit bunch production and lower crude palm oil price as well as higher cost of production. The lower profit in the resource-based manufacturing is due to lower margins from specialty fats and lower sales from oleochemicals, as well as lower contribution from an associate company," it said in a filing with Bursa Malaysia today.

For the full year, IOI's net profit declined 20% to RM1.8 billion from RM2.2 billion in FY11 due to translation loss on foreign currency denominated borrowings and lower profit from resource-based manufacturing segment.

Revenue fell 3% to RM15.6 billion from RM16.2 billion.

On its prospects, IOI said global economic growth has been showing signs of slowing down, which will make the current financial year ending June 30, 2013 (FY13) a challenging one for business operations.

Nevertheless, the group is optimistic of performing satisfactorily in FY13, underpinned by sustainable performance in its plantation segment on the back of resilient crude palm oil prices.

IOI also anticipates stronger sales from its property segment, with more launches in FY13.

"In Singapore, the continued resilient performance of the mass market segment will ensure that the group's more recent mass market projects continue to do well although the high-end market segment is still affected by uncertainty in the global economic environment and cooling measures introduced by the Singapore government."

The resource-based manufacturing segment continues to face challenging times, but is supported by resilient demand from the food industry for specialty oils and fats and the improving oleochemical performance.