Update CBIP 2Q net earnings fall 88% to RM19m

Update CBIP 2Q net earnings fall 88% to RM19m
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Monday, 19 August 2013 18:56

KUALA LUMPUR (August 19): Palm oil mill builder CB INDUSTRIAL PRODUCT HOLDING [] Bhd posted a net profit of RM18.9 million for its second quarter ended June 30 (2QFY13), an 88% year-on-year fall from the RM163.2 million.

Profit had fallen amid lower prices of palm oil, CBIP said in a filing with Bursa Malaysia today. CBIP said revenue for the quarter also dipped to RM145.3 million from RM151.6 million.

CBIP said the weaker 2QFY13 performance was mainly due to higher loss of a jointly-controlled entity, and lower contribution from associates.

"The share of results of associates were lower by 98% whereas the share of loss of the jointly-controlled entity increased by 64%. The combined result of the associates and joint identity was a loss as compared to a combined profit in the same financial period last year.

"The loss was mainly due to the lower prices of palm oil," CBIP said.

For 1HFY13, CBIP posted a decline of 80% in net earnings to RM37.5 million from RM188 million a year earlier.

This was on the back of RM293.8 million in revenue versus RM264.9 million previously.

Looking forward, CBIP said it expects to achieve satisfactory results in FY13, driven by its palm oil and special-purpose vehicle segments.