KL Kepong Q3 earnings slump 46% to RM233m (2445)

KUALA LUMPUR: Kuala Lumpur Kepong Bhd's (KLK)
earnings fell 46.1% to RM233.08mil in the third quarter ended June 30,
2012 from RM432.76mil a year ago as plantations profit fell by more
than half.
It said on Wednesday its revenue declined 11.8% to
RM2.603bil from RM2.952bil. Earnings per share were 21.89 sen compared
with 40.64 sen. Its pre-tax profit fell 45.2% to RM312.9mil from
RM570.8mil.
KLK said plantations profit fell 51.5% to RM220.4mil
(3QFY2011: profit RM454.4mil) due to lower selling prices for palm
products and rubber.
"The lower prices of palm products in
Indonesia, as a result of its export duties, had diluted the group's
achieved selling prices of crude palm oil and palm kernel," it said.
There was a decline in fresh fruit bunches production while production
costs increased.
KLK's oleochemical division posted lower profit of RM83.8mil, down 22.3% from the RM107.9mil a year ago.
"Gross
margins had deteriorated as competition from Indonesia remained
aggressive and global economic conditions continued to be weak," it
added.
KLK's retailing sector loss was reduced to RM3.2mil from
RM7.8mi despite a lower revenue of RM126.2mil compared with RM136.1mil
a year ago.
It also said the previous year's Q3 profit had included a surplus of RM43.4mil after the sale of an associate.
For
the nine-months ended June 30, it recorded a 28.9% decline in earnings
to RM788.97mil from RM1.110bil in the previous corresponding period.
Revenue was however, higher by 5.2% to RM8.150bil from RM7.743bil.