KUALA LUMPUR, August 21, 2009 – For the six months ended 30 June 2009, Boustead Holdings Berhad (Boustead) recorded a profit before tax of RM168 million on the back of a turnover of RM2.5 billion. The Group registered a second quarter profit after tax of RM63 million, down marginally from RM68 million recorded in the first quarter of the financial year.
For the period under review, earnings per share was 16.6 sen while net assets per share was RM4.51. The Board of Directors has declared a second interim dividend of 5 sen which brings total dividend for the first half of the financial year to 10 sen or 20%.
YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad, commented, “The first half of this year was by any measure a challenging one, defined by unprecedented volatility and unpredictability. Despite recording a marginal drop in profit between our first and second quarter of this financial year, we are confident that due to our diversified streams of business, the Group will remain resilient in ending the year on a profitable note.”
For the quarter under review, the Plantation Division posted a profit of RM10.4 million compared with RM23.7 million achieved in the previous quarter. This was primarily due to higher estate costs particularly due to manuring. The Division recorded an average palm oil price of RM2,428 per MT for the quarter under review compared with RM1,886 per MT in the preceding quarter. The increase in CPO price cushioned the decline in production which was affected by seasonal low period of production.
The Group’s Heavy Industries Division on the other hand posted a profit of RM33 million for the second quarter of this financial year, a 6% increase compared with RM31 million registered in the preceding quarter mainly due to improved margins.
During the period under review, the Property Division performed significantly well with a profit of RM22 million registering a 24% growth compared with the previous quarter. This was mainly due to the sustained earnings from the Group’s Royale Bintang hotels and the Curve.
For the current period, the Finance and Investment Division posted a profit of RM5.6 million largely due to interest savings. The Manufacturing and Services Division and the Trading Division registered a profit of RM6.6 million and RM 4million respectively.
“Tough times call for tough measures. We are reviewing our cost structure, pursuing greater organic growth and above all, improving efficiencies. Non-performing assets and investments will be dealt with, especially in market conditions such as these. The remaining half of the year though challenging, will also have welcome opportunities”, YBhg Tan Sri Dato’ Lodin concluded.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 80 subsidiary and associate companies, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group’s operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading and manufacturing & services. As at 30 June 2009, Boustead Holdings Berhad’s paid-up capital is RM326 million, while its shareholders’ funds stand at RM2.9 billion. Market capitalisation currently is in excess of RM2.5 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.-ends-
For further information, please call:
Reshvinder Kaur at 017 275 7985 or Ng Siew Yen at 03 7958 8348
or email at: acorncommunications@acornco.com.my
