KUALA LUMPUR (Nov 25): TRADEWINDS CORPORATION BHD [] net profit for the third quarter ended Sept 30, 2011 slumped to RM3.78 million from RM26.59 million a year earlier, due mainly to lower revenue recorded.
The company said on Friday that its revenue for the quarter dropped 30.6% to RM129.14 million from RM186.1 million in 2010.
Earnings per share for the quarter fell to 0.34 sen from 2.40 sen in 2010, while net assets per share was RM1.76.
For the nine months ended Sept 30, Tradewinds’ net profit fell to RM24.74 million from RM54.74 million in 2010, while revenue decreased to RM384.86 million from RM433.18 million.
Reviewing its performance, Tradewinds said its revenue decrease was mainly due to lower contribution from its property division as compared to a year earlier, where the division sold a parcel of land.
It said that in addition, higher finance costs and lower share of results of associates also contributed to lower pre-tax profit.
On its prospects, Tradewinds said that it expects its financial performance to be lower compared to 2010 due to refurbishments being carried out in certain hotels.
The renovation of the hotels (which will be completed in stages) was expected to benefit the group in the medium term, said Tradewinds.
“The investment PROPERTIES []’ operating performance will be affected as the group is embarking on the re-development of Menara Tun Razak and the CONSTRUCTION [] of a new tower block.
“The re-development will have a positive impact in the longer term,” it said.
The company said on Friday that its revenue for the quarter dropped 30.6% to RM129.14 million from RM186.1 million in 2010.
Earnings per share for the quarter fell to 0.34 sen from 2.40 sen in 2010, while net assets per share was RM1.76.
For the nine months ended Sept 30, Tradewinds’ net profit fell to RM24.74 million from RM54.74 million in 2010, while revenue decreased to RM384.86 million from RM433.18 million.
Reviewing its performance, Tradewinds said its revenue decrease was mainly due to lower contribution from its property division as compared to a year earlier, where the division sold a parcel of land.
It said that in addition, higher finance costs and lower share of results of associates also contributed to lower pre-tax profit.
On its prospects, Tradewinds said that it expects its financial performance to be lower compared to 2010 due to refurbishments being carried out in certain hotels.
The renovation of the hotels (which will be completed in stages) was expected to benefit the group in the medium term, said Tradewinds.
“The investment PROPERTIES []’ operating performance will be affected as the group is embarking on the re-development of Menara Tun Razak and the CONSTRUCTION [] of a new tower block.
“The re-development will have a positive impact in the longer term,” it said.
