Machinery sales boost Sime Darby earnings
KUALA LUMPUR: Sime Darby Bhd’s net profit jumped 64.4 per cent to RM222 million in the third quarter ended March from RM135 million a year earlier, thanks to higher sales of heavy machinery.
Sime Darby said yesterday revenue rose 3.3 per cent to RM8.57 billion from RM8.29 billion previously.
Group earnings per share were at 3.3 sen versus two sen previously.
No dividend was declared.
For the nine months, Sime Darby posted a net profit of RM764 million against RM1.76 billion a year earlier.
Revenue rose to RM26.83 billion revenue from RM25.25 billion a year ago.
For continuing operations, Sime Darby posted a 67.9 per cent increase in net profit to RM764 million from RM455 million in the same period last year.
Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said heavy machinery sales increased following improved trading conditions in the mining and construction sectors in Australia.
The upturn in the Australian mining industry boosted equipment deliveries and contributed to higher margins from equipment and parts sales for the industrial division.
“We expect improved conditions to continue as miners increase expenditure for equipment replacement cycles and expansion,” he said.
Jeffri said this provided some respite from headwinds experienced by the motor division due to the challenging automotive markets in China and Singapore.
“We are confident new car model launches, particularly in the premium segment, will spur growth despite the tough market environment,” he said.
Sime Darby’s current ninemonth results included the recognition of the arbitration award received for the ONGC Wellhead project of RM26 million and a RM17 million gain from the sale of a trademark.