KUALA LUMPUR (Nov 25): IJM Corp Bhd reported a fall of 35% in its earnings to RM74.77 million in the second quarter ended Sept 30, 2011 from RM115.13 million a year ago as it was impacted by unrealised foreign exchange translation losses on US dollar loans.
It said on Friday, the forex losses were for the US dollar borrowings in the infrastructure division of RM32 million compared with unrealised forex gain of RM29 million a year ago.
The notes to the account showed the foreign exchange difference was RM20.04 million compared with a forex translation gain of RM14.49 million a year ago. Its tendering, selling and distribution expenses increased to RM34.12 million from RM24.34 million though administrative expenses declined to RM10.22 million from RM20.63 million a year ago.
However, the group’s property and industry divisions posted increased profits in tandem with higher revenues.
IJM Corp said its revenue rose 39.7% to RM1.097 billion from RM785.50 million while earnings per share were 5.45 sen compared with 8.55 sen. It declared an interim dividend of 4.0 sen a share, which was similar to a year ago.
For the first half, its earnings dipped 5.5% to RM189.81 million from RM200.87 million while its revenue increased 20.3% to RM2.131 billion from RM1.771 billion.
“The group’s profit before tax decreased by 1.6% mainly due to the forex translation loss of RM27 million in the current year compared to a gain of RM6 million in the previous year. However, the foreign exchange translation losses had been offset by the profits growth in industry and PLANTATION [] divisions,” it said.
On the prospects, IJM said the group’s CONSTRUCTION [] division’s performance was expected to improve as many of the group’s local projects are expected to gain momentum in the current financial year.
“Order book replenishment prospects remain encouraging. The group’s property division expects to sustain its performance in the current financial year on the back of strong unbilled sales in excess of RM1 billion,” it said.
IJM Corp said the group’s Industry division expected sales of building materials to increase in tandem with the expected growth in construction activity.
On the plantations division, it said assuming the current level of palm product prices would be sustained, it expected the plantation division to record a satisfactory level of profitability.
It added that its Malaysian tolling and port operations were expected to continue to provide steady revenue streams to the group’s Infrastructure division.
However, it cautioned that initial expensing of higher finance costs and amortisation of new toll concessions in India were expected to dampen its divisional results.
It said on Friday, the forex losses were for the US dollar borrowings in the infrastructure division of RM32 million compared with unrealised forex gain of RM29 million a year ago.
The notes to the account showed the foreign exchange difference was RM20.04 million compared with a forex translation gain of RM14.49 million a year ago. Its tendering, selling and distribution expenses increased to RM34.12 million from RM24.34 million though administrative expenses declined to RM10.22 million from RM20.63 million a year ago.
However, the group’s property and industry divisions posted increased profits in tandem with higher revenues.
IJM Corp said its revenue rose 39.7% to RM1.097 billion from RM785.50 million while earnings per share were 5.45 sen compared with 8.55 sen. It declared an interim dividend of 4.0 sen a share, which was similar to a year ago.
For the first half, its earnings dipped 5.5% to RM189.81 million from RM200.87 million while its revenue increased 20.3% to RM2.131 billion from RM1.771 billion.
“The group’s profit before tax decreased by 1.6% mainly due to the forex translation loss of RM27 million in the current year compared to a gain of RM6 million in the previous year. However, the foreign exchange translation losses had been offset by the profits growth in industry and PLANTATION [] divisions,” it said.
On the prospects, IJM said the group’s CONSTRUCTION [] division’s performance was expected to improve as many of the group’s local projects are expected to gain momentum in the current financial year.
“Order book replenishment prospects remain encouraging. The group’s property division expects to sustain its performance in the current financial year on the back of strong unbilled sales in excess of RM1 billion,” it said.
IJM Corp said the group’s Industry division expected sales of building materials to increase in tandem with the expected growth in construction activity.
On the plantations division, it said assuming the current level of palm product prices would be sustained, it expected the plantation division to record a satisfactory level of profitability.
It added that its Malaysian tolling and port operations were expected to continue to provide steady revenue streams to the group’s Infrastructure division.
However, it cautioned that initial expensing of higher finance costs and amortisation of new toll concessions in India were expected to dampen its divisional results.
