KUALA LUMPUR : IJM Corp Bhd's second quarter (2Q) net profit declined at a yearly pace of 23.7% to RM67.06 million from RM87.92 million as the diversified entity raked in less income from its oil palm PLANTATION [] unit and sold less building materials.
Revenue during the quarter fell 9.5% to RM1.05 billion from RM1.16 billion, the company told the exchange today.
The cumulative first-half net profit dipped 23.1% to RM137.89 million from RM179.24 million, while revenue was down 7.1% to RM2.21 billion from RM2.38 billion.
"The business environment for the group’s activities will remain challenging in a volatile market where input costs continue to fluctuate amid global uncertainties.
"Despite such a challenging environment, the performance of the group’s CONSTRUCTION [] division is expected to improve as legacy projects with low margins will near completion and new projects are expected to contribute positively towards margins," said IJM, which also develops PROPERTIES [].
Looking ahead, the company expects its building material sales to increase as the construction sector recovers. This is in tandem with the implementation of various public infrastructure projects that have been delayed by the global economic downturn.
Meanwhile its plantation unit is anticipated to perform better in the coming financial year with the expectations of higher oil palm outputs, and better prices for the commodity.
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