KUALA LUMPUR, August 23, 2010 – Boustead Holdings Berhad (Boustead) registered a strong profit after tax of RM161 million for its second quarter ended June 30, 2010 compared with a profit of RM104 million registered in the first quarter of the current financial year. This was achieved on the back of a turnover of RM1.4 billion for the current quarter.

Cumulatively, the group posted a 103% increase in profit after tax at RM266 million for the first six months of the current financial year compared with RM131 million for the same period last year. The Group’s revenue for the first half of the current year stood at RM3 billion, a 20% increase compared with the corresponding period last year.

Earnings per share (EPS) was higher at 15.7 sen for the second quarter compared with the preceding quarter’s 9.75 sen. Net assets per share was RM4.34 (31 Dec 2009: RM4.20).

In true Boustead tradition and being a strong dividend yielding stock, the Group continues to deliver enhanced shareholder value, mirrored by another impressive dividend payment for the quarter under review. Boustead declared an increased dividend of 10 sen per share (2009: Q2 – 3.75 sen) which brings total dividend for the first half of the current financial year to a remarkable 15 sen. (2009 half year: 7.5 sen)

YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad said, “Most of our divisions have performed satisfactorily and we have marked improvements compared with the previous financial year. Coupled with this, our focus on improving efficiencies and strengthening organic growth has indeed proved viable.”

“Leading the way for the six month period was the Plantation Division, registering a significant increase in profit of RM92 million (2009: RM34 million) primarily due to positive crude palm oil (CPO) prices. This Division achieved an average CPO price of RM2,495 per MT, which was a distinct 18% increase against last year’s corresponding period’s average of RM2,113 per MT while the cumulative fresh fruit bunches crop totalling 556,165 MT was 2% better than the corresponding period last year.”

The Finance & Investment Division was the highest profit contributor for the six month period delivering a profit of RM105 million. This resulted in an increase of RM95 million from last year. The primary contributing factor was the recognition of gains from the disposal of BH Insurance Bhd for RM75 million. Furthermore, the improved results from the Affin Group and interest savings from Boustead Holdings Berhad’s level contributed to the Division’s bottom line.

The Heavy Industries Division conversely closed the six month with a lower profit of RM49 million, compared with RM64 million during the same period last year. This was mainly due to lower progress billings. The Trading Divison’s profit for the first six months of 2010 totalling RM33 million was a significant improvement from RM7.2 million for the same period last year. This was due to a noteworthy increase in sales volume driven by BH Petrol.

The Property Division’s profit of RM31 million for the six month period saw a decrease compared with RM40 million in the same period in 2009. This was mainly due to the decline in contribution from property development activity. The Manufacturing and Services Division recorded a RM10 million profit.

“The Group is bullish on prospects ahead particularly as the Malaysian economy is expected to fare much better in the second half of the financial year. Our divisions are at the forefront of the Malaysian economy and we expect to ride on this positive sentiment. In addition, we are optimistic of CPO prices trending upward over the next few months due to adverse weather conditions, thinning supply and an increase in demand, especially in traditional markets around the world.” 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 90 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 2010, Boustead Holdings Berhad’s paid-up capital was RM470 million, while its shareholders’ funds stood at RM4.1 billion. Market capitalisation currently is RM4.0 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.


Issued on behalf of: Boustead Holdings Berhad By: acorn communications sdn bhd
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