Lingui posts higher Q1 pre-tax profit

Lingui Developments Bhd registered a 65.15 per cent increase in pre-tax profit for the first quarter ended Sept 30, 2011 to
RM24.04 million from RM14.56 million in the corresponding three-month period. Its revenue grew 19.16 per cent to RM435.01 million from RM365.06 million.

In a statement today, Lingui said gross profit for the period increased 58.61 per cent to RM34.03 million from RM21.46 million previously.

"The increase in the group's core profit before taxation was mainly attributed to strong operating results from the logs segment.

"In addition, the return to profitability of the group's plywood and veneer operation also contributed significantly to this quarter's performance," it said.


Moving forward, Lingui said the group's performance in future quarters might be affected if the correction in timber prices following Japan's delay in commencing its post earth quake reconstruction, was prolonged.

"Although faced with a volatile and uncertain operating environment, the group continues to work on improving operational efficiency by enhancing the productivity of its workforce and equipment fleet and emphasising tight control
over cash cost of production," it added. -- Bernama