Loss in oilseeds and grains unit; absence of big one-time gain
By FELDA CHAY
WILMAR International's third-quarter net profit plunged 60.3 per cent year-on-year due to the weaker performance of its oilseeds and grains division and the absence of a big one-time gain.
Net profit for the period ended Sept 30 was US$259.5 million, or 4.1 US cents a share. In the corresponding period last year, Wilmar registered US$652.9 million in earnings, partly buoyed by a net exceptional gain of US$167 million from the sale of new shares by its Wilmar China unit.
The latest poor showing took a heavy toll on Wilmar's share price yesterday. It touched a low of S$6.48 before recovering slightly to close 37 Singapore cents lower at S$6.51, a fall of 5.4 per cent. Some 37.3 million shares changed hands.
Despite the lacklustre results, the world's biggest listed palm oil plantation firm remained upbeat about its prospects.
Chairman and chief executive Kuok Khoon Hong said: 'Despite the weak Q3 performance, the group remains positive on its long-term prospects.'
'The outlook for Asian economies, especially China, India and Indonesia, remains positive. The group will continue to leverage on its well-established presence in these markets and invest in existing and new businesses for growth.'
For Q3, Wilmar's oilseeds and grains division recorded a pre-tax loss of US$37.1 million, despite a 28 per cent rise in sales volume. The loss was attributed to 'weaker margins and less timely purchases of raw materials'.
Revenue for the period rose 23.3 per cent to US$7.8 billion.
For the nine-month period, Wilmar's earnings dropped 30.2 per cent to US$1 billion, or 15.7 US cents per share. Sales were 25.5 per cent higher at US$21.3 billion.
At Sept 30, the company had cash and cash equivalents of US$596.3 million, compared with US$1.2 billion a year earlier.
No comments:
Post a Comment