Wednesday, 9 May 2012

KKB Engineering 1Q net profit falls 60% to RM7.71m

KUALA LUMPUR (May 9): KKB ENGINEERING BHD []'s net profit for the first quarter ended Mar 31, 2012 fell 60.82% to RM7.71 million from RM19.68 million a year ago, due to the completion of major projects in 2011 and the absence of new projects for both its CONSTRUCTION [] and steel fabrication divisions.

In a statement on Bursa Malaysia on Wednesday, it said that its revenue for the quarter decreased by 11.71% to RM52.54 million from RM59.51 million a year earlier.

Earnings per share were 2.99 sen compared to 7.63 sen, while net assets per share was 99 sen.

Reviewing its performance, KKB said that although revenue for its construction and steel fabrication divisions dropped 80.9% to RM5.1 million from RM26.8 million, its manufacturing arm managed to offset lower sales of liquified petroleum gas cylinders with strong sales of steel pipes by recording a 211.1% jump in revenue to RM30.8 million from RM9.9 million for the same quarter last year.

"The increased competitive nature of the engineering sector’s businesses coupled with the increasing cost of sales resulting from higher raw material costs have contributed to the lower earnings of the group," it added.

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