Published: Wednesday August 29, 2012 MYT 7:24:00 PM
KL Kepong Q3 earnings slump 46% to RM233m
KUALA LUMPUR: Kuala Lumpur Kepong Bhd's (KLK) earnings fell 46.1% to RM233.08mil in the third quarter ended June 30, 2012 from RM432.76mil a year ago as plantations profit fell by more than half.
It said on Wednesday its revenue declined 11.8% to RM2.603bil from RM2.952bil. Earnings per share were 21.89 sen compared with 40.64 sen. Its pre-tax profit fell 45.2% to RM312.9mil from RM570.8mil.
KLK said plantations profit fell 51.5% to RM220.4mil (3QFY2011: profit RM454.4mil) due to lower selling prices for palm products and rubber.
"The lower prices of palm products in Indonesia, as a result of its export duties, had diluted the group's achieved selling prices of crude palm oil and palm kernel," it said. There was a decline in fresh fruit bunches production while production costs increased.
KLK's oleochemical division posted lower profit of RM83.8mil, down 22.3% from the RM107.9mil a year ago.
"Gross margins had deteriorated as competition from Indonesia remained aggressive and global economic conditions continued to be weak," it added.
KLK's retailing sector loss was reduced to RM3.2mil from RM7.8mi despite a lower revenue of RM126.2mil compared with RM136.1mil a year ago.
It also said the previous year's Q3 profit had included a surplus of RM43.4mil after the sale of an associate.
For the nine-months ended June 30, it recorded a 28.9% decline in earnings to RM788.97mil from RM1.110bil in the previous corresponding period. Revenue was however, higher by 5.2% to RM8.150bil from RM7.743bil.