Sime Darby 3Q net profit falls to RM135 million

KUALA LUMPUR: Sime Darby Bhd’s net profit for the third quarter ended March 31, 2018 (Q3 2018) fell to RM135 million from RM692 million in the corresponding period last year.

Revenue, however, rose to RM8.29 billion from RM7.87 billion previously.

In a filing with Bursa Malaysia, Sime Darby said its net profit for Q3 2018 was lower compared to Q3 2017 due to additional interest income received in the earlier quarter.

Inaseparatestatementyesterday, the company has clarified that its Q3 2017 net profit of RM692 million included results from the discontinued operations from the plantation and property divisions, which were listed as independent entities in November 2017.

For continuing operations, Sime Darby recorded a net profit of RM189 million in Q3 2017 against RM135 million registered in Q3 2018, reflecting a 28.6 per cent decline.

The group said for Q3 2018, its profit before interest and tax saw an improvement due to the recovery of the Australian mining industry and improved sales in its motors and industrial divisions.

Group chief executive officer Jeffri Salim Davidson said the company would remain focused on core sectors and would continue to explore opportunities to accelerate growth and drive its businesses forward.

Moving forward, the group said the motor division’s performance was expected to improve with higher sales from new model launches in the coming quarters, though it would continue to be affected by strong competition and cautious consumer sentiment.

It said the group’s port operations would continue to face competition from other ports and environmental controls implemented by local authorities -- limiting the operating time of the ports.

Against the backdrop of uncertainties in the global economy, the board expects the group’s performance for the financial year ending June 30, 2018 to be satisfactory, it added.