Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 21): Sime Darby Bhd said today first quarter net profit from continuing operations fell 9.3% to RM225 million from RM248 million a year earlier as the group's heavy equipment and automotive dealership businesses reported lower profit.

In a statement to Bursa Malaysia today, Sime Darby said revenue from continuing operations rose to RM8.85 billion in the first quarter ended Sept 30, 2018 (1QFY19) from RM8.14 billion.

According to Sime Darby's website, the group undertakes its heavy equipment business under the industrial segment while automotive dealership operations are placed under the motor division.

Sime Darby told Bursa Malaysia: "(Industrial segment) profit decreased by 27.5% to RM179 million in the current quarter. The previous period included gain in disposal of properties of RM165 million. Excluding the gain, profits increased by 118.3% mainly due to higher equipment sales to the mining and construction sectors in Australia."

"(Motor segment) profit decreased by 6.3% to RM105 million in the current quarter mainly due to lower margins in China as a result of competitive discounting in the market and lower sales and margins in Singapore," Sime Darby said.

Looking ahead, Sime Darby said its board expects the group's performance for FY19 to be satisfactory against the backdrop of uncertainty in the global economy.

"The ongoing trade tension between the world's major economies and tightening monetary policy have led to volatility in the equity and foreign exchange markets. This has increased the uncertainty in the growth prospects of global economy. Prolonged uncertainties may also dampen growth of economies in the region," Sime Darby said.

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