Sime Darby's Q2 profit rises to RM1.6b

Conglomerate Sime Darby Bhd posted a higher pre-tax profit at RM1.6 billion for its second quarter ended Dec 31, 2011 compared to RM1.248 billion recorded for the previous corresponding period.

Revenue for the second quarter rose to RM11.389 billion from RM9.994 billion registered for the second quarter of the preceding financial year.

For its six months, pre-tax profit increased to RM3.089 billion from RM2.208 billion recorded for the first half of the previous financial year.

Revenue grew to RM22.453 billion from RM18.669 billion recorded for the first half of the preceding financial year. The group announced an interim dividend of 10 sen per share for the financial year ending June 30, 2012.

Sime Darby president and Group chief executive Datuk Mohd Bakke Salleh said the group had a commendable first half with all divisions achieving double-digit earnings growth.

“Our continuous emphasis on enhancing earnings quality has resulted in a robust performance across each division.

"Though there has been considerable economic uncertainty in the global economy over the past six months, our businesses have persevered and remained resilient in the face of a challenging business environment,” he said in a statement today.

Higher realised crude palm oil (CPO) prices and operational efficiency improvements boosted the plantation division’s operating profit to RM1.8 billion in the first half of the year under review, an increase of 38 per cent over the same period the previous year.

For the first six months of financial year 2011, the division achieved an average CPO price of RM2,872/MT against RM2,692/MT in the corresponding period in the previous financial year.

The group’s CPO production was also higher by 10 per cent compared to the first half of FY2010/2011 as oil extraction rate (OER) for the group improved by 0.5 per cent to 21.9 per cent.

The group’s industrial division continued to thrive on the back of robust activity in the mining, logging and construction sectors in Australia and Malaysia to post an operating profit of RM628 million, an increase of 38 per cent over the same period in the preceding year. - Bernama