KUALA LUMPUR (Jan 20): Nylex (Malaysia) Bhd net profit for the second quarter ended Nov 30 2011 fell 18.68% to RM3.96 million from RM4.88 million a year earlier, due mainly to margin erosion from intense competition from cheap imports.
The company said its revenue in the second quarter rose 49.62% to RM380.67 million from RM254.43 million in 2010.
Earnings per share fell to 2.04 sen from 2.59 sen a year earlier, while net assets per share was RM1.44.
For the six months ended Nov 30, Nylex’s net profit surged to RM9.46 million from RM2.36 million in 2010, on the back of a 31.45% increase in revenue to RM709.01 million from RM539.36 million.
Reviewing its performance, Nylex said the demand for its products remains healthy for the quarter.
However, the company said that with the uncertain economic outlook, its customers had pressed for price reductions and coupled with the influx of cheap imports from neighbouring countries, its profitability has been adversely affected.
On its prospects, Nylex said the group continued to perform better than the previous year despite the prevailing difficult conditions.
“The board is of the view that the trading condition will continue to be difficult in light of the uncertainty in the global market,” it said.
The company said its revenue in the second quarter rose 49.62% to RM380.67 million from RM254.43 million in 2010.
Earnings per share fell to 2.04 sen from 2.59 sen a year earlier, while net assets per share was RM1.44.
For the six months ended Nov 30, Nylex’s net profit surged to RM9.46 million from RM2.36 million in 2010, on the back of a 31.45% increase in revenue to RM709.01 million from RM539.36 million.
Reviewing its performance, Nylex said the demand for its products remains healthy for the quarter.
However, the company said that with the uncertain economic outlook, its customers had pressed for price reductions and coupled with the influx of cheap imports from neighbouring countries, its profitability has been adversely affected.
On its prospects, Nylex said the group continued to perform better than the previous year despite the prevailing difficult conditions.
“The board is of the view that the trading condition will continue to be difficult in light of the uncertainty in the global market,” it said.
