Sime Darby’s pre-tax profit down 41pc to RM3.071b

KUALA LUMPUR, Aug 27 – Sime Darby Bhd’s pre-tax profit for the fourth quarter ended June 30, 2009 fell to RM1.108 billion from RM1.454 billion in the corresponding period of 2008.
Its revenue decreased to RM7.535 billion from RM9.121 billion previously. For the financial year ended June 30, 2009, Sime Darby said its pre-tax profit dropped 41 per cent to RM3.071 billion from RM5.206 billion as revenue fell nine per cent to RM31.014 billion from RM34.045 billion.
In a statement here, Sime Darby said its net profit of RM2.3 billion after tax and minority interest, exceeded by 20 per cent the group’s Key Performance Indicator (KPI) of RM1.9 billion.
The group recorded a Return on Average Shareholders’ Funds of 10.6 per cent versus its KPI of 8.8 per cent.
The Plantation Division, it registered a 56 per cent decline in operating profit to RM1.7 billion compared with the previous year.
This was principally driven by lower average CPO prices in the year as well as lower production as a result of biological tree stress and unfavourable weather conditions, it said.
Production however significantly improved after bottoming out during the third financial quarter period as yields in Malaysia and Indonesia recovered, it said.
The Industrial Division continued its sterling performance, reporting a 24 per cent increase in operating profit to RM862 million, driven mainly by its South East Asian and Australasian operations.
Despite the uncertain outlook for the property sector in the beginning of the year, the Property Division registered a four per cent growth year-on-year in operating profit to RM462 million.
Even in the face of a difficult environment for consumer related businesses, the Motors Division remained resilient and posted an increase of 13 per cent in operating profit at RM179 million for the year.
Commenting on the overall results, Sime Darby President and Group Chief Executive Datuk Seri Ahmad Zubir Murshid said he was pleased with the performance especially since the group was emerging from a very challenging business environment.
The group has proposed a final single tier dividend of 15.3 sen per share for the financial year ended June 30, 2009.
Including the interim dividend paid of five sen per share less Malaysian income tax at 25 per cent, total gross dividend for the year will be 20.3 sen per share. – Bernama

27/8/2009