MARKET DEVELOPMENT
IOI Q2 Pre-Tax Profit Falls To RM487.3 Million
IOI Q2 Pre-Tax Profit Falls To RM487.3 Million
27/02/2014 (Bernama) - IOI Corp Bhd posted a lower pre-tax profit of RM487.3 million for the second quarter ended Dec 31, 2013 compared with RM490.3 million recorded in the same period of 2012.
Revenue for the quarter also fell to RM2.94 billion from RM3.25 billion.
In a filing to Bursa Malaysia, IOI attributed the weaker performance to translation loss of RM14 million on foreign currency denominated borrowings in the quarter under review compared to a gain of RM92 million in the previous financial year.
It said the plantation profit increased by three per cent year-on-year to RM313.7 million for the second half this financial year due to the increase in crude palm oil and palm kernel prices.
The resource-based manufacturing profit for the second quarter this year was higher at RM259.8 million compared to RM174.9 million previously due to higher margin from all sub-segments as well as increase in sales volume from the oleochemicals sub-segment, it said.
IOI said its property development recorded 14 per cent increase in profit to RM159.9 million driven by higher development revenue.
On prospects, the group expected its performance for the remaining year to be satisfactory driven by the positive uptrend in palm oil prices on improved fundamentals such as lower stocks and higher biodiesel mandates in Malaysia and Indonesia.
"With the current hot and dry weather affecting parts of Malaysia and Indonesia, this positive price uptrend is expected to sustain," it said.
Revenue for the quarter also fell to RM2.94 billion from RM3.25 billion.
In a filing to Bursa Malaysia, IOI attributed the weaker performance to translation loss of RM14 million on foreign currency denominated borrowings in the quarter under review compared to a gain of RM92 million in the previous financial year.
It said the plantation profit increased by three per cent year-on-year to RM313.7 million for the second half this financial year due to the increase in crude palm oil and palm kernel prices.
The resource-based manufacturing profit for the second quarter this year was higher at RM259.8 million compared to RM174.9 million previously due to higher margin from all sub-segments as well as increase in sales volume from the oleochemicals sub-segment, it said.
IOI said its property development recorded 14 per cent increase in profit to RM159.9 million driven by higher development revenue.
On prospects, the group expected its performance for the remaining year to be satisfactory driven by the positive uptrend in palm oil prices on improved fundamentals such as lower stocks and higher biodiesel mandates in Malaysia and Indonesia.
"With the current hot and dry weather affecting parts of Malaysia and Indonesia, this positive price uptrend is expected to sustain," it said.