KUALA LUMPUR, Nov 21 — Sime Darby Bhd’s net profit declined to RM225 million in the first quarter ended Sept 30, 2018 (Q1) from RM1.32 billion recorded in the same period in 2017.
Revenue for the quarter amounted to RM8.84 billion, up 8.6 per cent year-on-year while basic earnings per share stood at 3.30 sen versus 19.30 sen previously.
The company in its filing to Bursa Malaysia said that the ongoing trade tension between the world’s major economies and tightening monetary policy had led to volatility in the equity and foreign exchange markets.
“This has increased the uncertainty in the growth prospects of the global economy. Prolonged uncertainties may also dampen growth of economies in the region,” it noted.
Sime Darby said the industrial division’s performance continued to be supported by the recovery of the mining industry in Australia.
The acquisition of Heavy Maintenance Group Pty Ltd in Australia, expected to be completed by end-2018, would complement and add capacity to the division’s existing cylinder refurbishment and chroming business in Queensland, Australia.
The Motors division, on the other hand, is expected to be impacted by strong competition while the expected slowdown in economic growth, especially in China, and rising interest rates would adversely impact demand.
The conglomerate said the division would continue to source for growth opportunities, particularly in China and Australia, and improve efficiency to mitigate these adverse effects.
“Port operations continue to face competition from other ports. The division will continue focusing on strengthening its business performance by improving operational productivity and diversifying cargo type and customers.
“Against the backdrop of uncertainty in the global economy, the board expects the group’s performance for the financial year ending June 30, 2019 to be satisfactory,” it said. — Bernama
