Thursday, 10 May 2012

Lingui 3Q net profit slumps 80.3% to RM13.59m

KUALA LUMPUR (May 10): LINGUI DEVELOPMENT BHD []’s net profit slumped 80.3% to RM13.59 million for its third quarter ended Mar 31 from RM69.11 million a year ago due to lower extraction volumes and weak demand from Japan.

In a statement on Bursa Malaysia on Thursday, it said revenue for the quarter fell 0.6% to RM374.15 million from RM377.39 million a year earlier.

Earnings per share were 2.06 sen compared to 10.48 sen, whiel net assets per share was RM2.51.

Reviewing its results, the company attributed the weak performance to lower extraction volumes as well as weak demand for timber for reCONSTRUCTION [] activities affected by the Japanese earthquake.

For the nine months ended Mar 31, the group’s revenue rose 11.97% to RM1.31 billion from RM1.17 billion while net profit plunged 81.38% to RM30.53 million from RM163.99 million.

On its prospects, Lingui said the short term outlook for timber industry was expected to be constrained due to more purchasers taking a cautious approach with the uncertain world economic conditions.

It said the timing of Japan’s major reconstruction activities in areas affected by the earthquake and tsunami would be a key impetus for an increase in plywood demand and hopefully selling prices.

“The demand from China for timber products has shown sign of slowing down with implementation of various macro-economic control measures by the Chinese government to curb the over-heating of the Chinese economy.

“Operating under a challenging environment with uncertain outlook and likely greater competition, as various producers strive to increase or at least maintain market share against a likely lower demand base, the Group will continue to manage its cost to remain lean and efficient,” it said.

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