LB Aluminium Q4 profit tumbles 76%

PETALING JAYA: LB Aluminium Bhd posted a 76.4% fall in net profit to RM1.38mil for the fourth quarter ended April 30, 2017 (Q4’17) from RM5.86mil a year ago mainly due to an under provision of deferred taxation in the previous financial year.

However, its full year results (FY17) were higher at RM17.95mil compared with RM15.72mil in the previous corresponding period, the company said in a filing with Bursa Malaysia.

Meanwhile, revenue for Q4 was also higher at RM124.54mil against RM109.16mil.

“The Malaysian ringgit has strengthened recently vis-a-vis the US dollar, which augurs well for us as our primary raw material, aluminium, is imported and priced in US dollar.

“However, the volatility of aluminium prices has caused uncertainties in our pricing policy. In this regard, we will continue to closely monitor these changes in raw material prices in order to ensure that our margins are reasonably protected and our selling prices remain competitive,” said LB Aluminium.

Barring any unforeseen circumstances, the board is optimistic that the group will remain profitable in the coming financial year.

In addition, the directors of LB Aluminium have recommended a first and final single tier dividend of 2.50 sen per share in respect of FY17, subject to shareholders’ approval at the forthcoming annual general meeting.

The payment date of the dividend and the date for the determination of dividend entitlement will be announced later. LB Aluminium closed 9.3% lower at RM0.83, traded on a volume of 16.24 million shares.