Results: Nylex (M) Q2 profit slips

Nylex (Malaysia) Bhd pre-tax profit for the second quarter ended November 30, 2011 slipped to RM5.75 million from RM6.15 million in the same quarter the previous year.

Revenue increased to RM380.67 million from RM254.43 million.

In a filing to Bursa Malaysia today, the company said the increase in revenue was due to higher sales contribution from the Industrial Chemical Division and the Polymer Division.

"However, intense competition from cheap imports has eroded our margins and as a result, the group recorded a lower pre-tax profit of RM5.7 million," it added. - Bernama



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Nylex 2Q net profit falls 18.68% to RM3.96m

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.



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Asian markets remain in the red at mid-day on Eurozone jitters

KUALA LUMPUR (Dec 6): Asian markets extended their losses at mid-day on Tuesday, after Standard & Poor's warned that the credit ratings of top-rated European nations may be cut.

The rating agency’s warning brought to a halt a rally in global equities that began last week and had continued on Monday, when the leaders of France and Germany agreed a plan aimed at guiding the region out of its two-year-old crisis, according to Reuters.

The FBM KLCI was down 9.90 points to 1,480.05 at the mid-day break.

Market breadth was negative with losers leading gainers by 404 to 199, while 268 counters traded unchanged. Volume was 1.36 billion shares valued at RM616.77 million.

The ringgit weakened 0.19% to 3.1380 versus the US dollar; crude palm oil futures for the third month delivery fell RM23 per tonne to RM3,103, crude oil slipped 46 cents per barrel to US$100.53 while gold fell US$10.35 an ounce to US$1,712.65.

At the regional markets, Japan’s Nikkei 225 fell 1.23% to 8,588.66, Hong Kong’s Hang Seng Index lost 1.51% to 18,889.76, Taiwan’s Taiex was down 1.2% to 7,012.63, South Korea’s Kospi lost 0.98% to 1,904.11, Singapore’s Straits Times Index fell 0.97% to 2,739.37 and the Shanghai Composite Index shed 0.78% to 2,315.12.

On Bursa Malaysia, KLK fell 34 sen to RM21.64, Batu Kawan and Nestle lost 20 sen each to RM16.90 and RM53, Aeon and Hong Leong Bank down 14 sen each to RM7.21 and RM10.70, CIMB fell 13 sen to RM7.08 while Proton lost 11 sen to RM4.39.

Among the gainers, Dutch Lady added 20 sen to RM25.10, Orient 19 sen to RM4.67, Tradewinds PLANTATION []s 13 sen to RM4.55, United Plantations 12 sen to RM18.48, UM Land 11 sen to RM1.53, Mintye and LPI Capital up 10 sen each to RM1.30 and RM13, Muda 8.5 sen to 95.5 sen and Nylex eight sen to 63 sen.

Utopia was the most actively traded counter with 115.4 million shares done. The stock added two sen to 12 sen.

Other actives included Sanichi, Compugates, Proton securities and DRB-Hicom securities.



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