IJM profit falls due to lower man­u­fac­tur­ing and es­tate con­tri­bu­tions

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: IJM Corp Bhd‘s earn­ings fell 32.3% to RM110.86mil in the sec­ond quar­ter ended Sept 30 due to lower con­tri­bu­tions from its man­u­fac­tur­ing and plan­ta­tion sec­tors.

The com­pany said its earn­ings fell from RM163.89mil a year ago also due to the non-re­cur­rence of a one-off gain of RM27.9mil from an as­so­ciate a year ago, and also due to a net un­re­alised for­eign-ex­change (forex) loss of RM400,000 com­pared with a gain of RM16.70mil a year ago.

The in­fra­struc­ture-prop­erty-plan­ta­tion com­pany re­ported that its rev­enue rose 7.2% to RM1.59bil from RM1.48bil pre­vi­ously. Earn­ings per share was at 3.06 sen com­pared with 4.55 sen be­fore. It has main­tained its div­i­dend pay­out of three sen a share.

For the six-month pe­riod, mean­while, earn­ings fell 15% to RM237.25mil from RM279.41mil in the pre­vi­ous cor­re­spond­ing pe­riod. Its rev­enue was, how­ever, higher by 9.4% to RM3.06bil from RM2.79bil.

IJM’s pre-tax profit fell 12.5% to RM379.48mil from RM433.88mil mainly due to lower con­tri­bu­tions from the group’s man­u­fac­tur­ing and quar­ry­ing and plan­ta­tion divi­sions, and the non-re­cur­rence of a one-off gain of RM27.9mil. It recorded a net un­re­alised forex loss of RM4mil ver­sus a gain of RM10.8mil a year ago.

On the out­look, IJM said the group’s con­struc­tion divi­sion ex­pects an en­cour­ag­ing mar­ket out­look sup­ported by RM8.3bil of out­stand­ing order book, un­der­pinned by the im­ple­men­ta­tion of on­go­ing do­mes­tic in­fras­truc­tural projects, as well as a healthy pipe­line of new large pub­lic in­fra­struc­ture projects to be rolled out un­der the 11th Malaysia Plan.

How­ever, it ex­pects the lo­cal prop­erty mar­ket to re­main chal­leng­ing, as weak con­sumer sen­ti­ment per­sists due to un­cer­tain mar­ket sen­ti­ments, con­tin­ued strin­gent mort­gage ap­provals and in­com­ing sup­ply of new launches and com­pet­ing com­pleted prop­er­ties.

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