Hong Leong’s Tasek Corp 2Q profit falls 6%, pays 32 sen dividend

by **Cals** Thu 25 Jul 2013, 20:26

Hong Leong’s Tasek Corp 2Q profit falls 6%, pays 32 sen dividend
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 25 July 2013 18:11

KUALA LUMPUR (July 25): Hong Leong Group's Tasek Corp Bhd reported a 6% drop in second quarter net profit from a year earlier as the cement and concrete manufacturer registered less income from its cement division.

In a statement to the exchange today, Tasek said higher production cost had also curbed its bottom line.

Tasek said net profit fell to RM21.82 million in the second quarter ended June 30, 2013 (2QFY13) from RM23.13 million previously. Revenue however rose to RM142 million from RM139.73 million.

According to the firm, its cement segment registered lower operating profit of RM19.1 million in 2QFY13 compared to RM23.6 million previously

“This was mainly attributed to the lower sales margin from local cement sales because of intense pricing compounded by higher production cost due to scheduled plant maintenance.

"The concrete segment on the other hand registered an operating profit of RM761,000 in the current quarter vis-a-vis a loss of RM822,000 in the same period last year mainly due to the contribution from higher concrete sales volume and better pricing despite rising raw material costs of aggregates and sand," Tasek said.

Cumulative 1HFY13 net profit fell to RM43.53 million from RM48.02 million while revenue declined to RM278.09 million from RM290.36 million.

Tasek plans to reward shareholders with a dividend of 32 sen a share less 25% income tax for 2QFY13.

The firm expects "to remain profitable in the next quarter" as it capitalises on building material demand from the domestic CONSTRUCTION [], and property development sectors.