Sime Darby 1Q net profit down 21%

Written by Chong Jin Hun
Wednesday, 25 November 2009 18:39

KUALA LUMPUR: SIME DARBY BHD []'s first quarter net profit fell by an annual pace of 21% due to lower income from the conglomerate's oil palm PLANTATION [], property, and industrial units.

In a statement to Bursa Malaysia today, Sime Darby said that its net profit in the quarter ended Sept 30, 2009 came to RM684.64 million compared with RM866.98 million a year earlier. Revenue declined 11.1 % to RM7.74 billion from RM8.71 billion.

"The outlook for a gradual and sustainable global economic recovery is looking positive. This will result in increasing economic activities in the market sectors in which the group operates, but some uncertainties remain.

"In view of the above, barring unforeseen circumstances, the directors are of the opinion that the group’s performance for the current financial year would be better than that of the previous year," Sime Darby said.

Looking ahead, the company expects its oil palm output to be higher than that of the previous year. Significant locked-in real estate sales in the preceding fourth quarter of the previous financial year are also anticipated to support earnings.

Sime Darby added that improvements in market sentiment are expected to augur well for the group’s other divisions, which include automotive, energy and utilities, as well as healthcare operations.