CBIP 2Q profit up 11% to RM21.12 million

by **Cals** Tue 26 Aug 2014, 09:43

Business & Markets 2014

Written by Chen Shaua Fui of theedgemalaysia.com

Monday, 25 August 2014 19:15

KUALA LUMPUR (Aug 25): CB Industrial Product Holdings Bhd (CPIB) posted an 11% rise in net profit to RM21.12 million in the second quarter ended June 30, 2014, compared with RM 18.86 million a year earlier.

However, revenue was lower at RM124.42 million versus RM145.43 million in the previous corresponding period.

The palm oil mill equipment manufacturer's cumulative net profit for the first half of the financial year ending Dec 31, was 18% higher at RM 44.40 million from RM37.53 million previously.

“The decrease in the group’s revenue was mainly due to lower project billing by the special purposes vehicles segment during the financial period, it said in a filing with Bursa.

CBIP attributed the higher profit to the improvement in the palm oil equipment segment and the share of results of the associates.

“In addition, the other operating income also improved as compared to the same period last year,” said CBIP said.

It added that the palm oil mill equipment segment reported higher revenue and profit before taxation by 12% and 15% respectively as compared to the same period last year.

The increase in profit was mainly due to improvement in project billing and profit margin, it said.

Revenue and profit before tax of the special purpose vehicles segment fell by 53% as compared to the same period last year.

The decrease was mainly due to lower project completion and billing during the current financial period, it added.

CBIP also said its associates and joint venture companies recorded a combined profit from a combined loss in the same financial period last year.

The improvement was mainly attributable to higher prices of palm products and FFB production.

“In view of the progress in the implementation of the projects secured in hand, the board expects the group to achieve satisfactory results driven by palm oil,” CBIP said.