Supermax to meet FY2012 profit target: Thai

KUALA LUMPUR:Rubber gloves manufacturer Supermax Corporation Bhd expects to meet its after-tax profit forecast of RM100 million
to RM110 million for the company's financial year ended Dec 31 2011, says executive chairman Datuk Seri Stanley Thai.

Thai estimates revenue of about RM1 billion for the company's financial year 2011.

He said the company would announce the performance for its financial year 2011 in the middle of February.

According
to Thai, Supermax's performance for its financial year 2011 was
affected among others by the firm price of natural rubber and the
economic uncertainty.

Supermax posted an after-tax profit of RM158.9 million on revenue of RM977.28 million for its financial year 2010.

Moving
forward, he foresees a remarkable performance for the company's
financial year 2012 due to the lower price of natural rubber.

Thai estimates an increase of between 20 and 30 per cent in the group's sales for the current financial year.

"Financial
year 2012 will be the best year for Supermax. The financial performance
will be similar to that of 2010. Our financial year 2012 will record
the highest absolute value in the history of the rubber gloves
industry," he said at a press conference after the company's
extraordinary general meeting
(EGM) here today.

Thai said
natural rubber gloves contributed 63 per cent and 60 per cent to the
group's profit for its financial years 2010 and 2011, respectively.

"For
2012, the contribution of natural rubber gloves to the group's profit
would be higher. Demand for natural rubber gloves is increasing," he
said.

He said apart from the lower natural rubber price, other factors
contributing to the expected better earnings would be sales growth and contribution from the company's distribution activities.

Supermax
had incorporated a subsidiary in the United Kingdom, which will take
care of the markets in England, Scotland and Ireland, he said.

He
also said the company's subsidiary in Germany had recorded high growth
in business activities especially in the hospital market in the country.

Thai
said Supermax currently produced 17.5 billion pieces of gloves and the
number would increase gradually to 22 billion pieces by 2013 with the
completion of its two new plants in Meru, Selangor and the replacement
of all its production lines.

"There will be a gradual increase of 20 per cent a year in production capacity," he added.

At
the extraordinary general meeting today, shareholders of
Supermaxapproved its proposed bonus issue of 340,077,440 new ordinary
shares of RM0.50 each in the company to be credited as fully paid-up on
the basis of one bonus share for every one existing Supermax share.

The
shareholders also approved the proposed purchase by Supermax of up to
10 per cent of its issued and paid-up share capital. - Bernama