The group’s net profit for the quarter under review was also lower, mainly due to higher net profit boosted by a RM65 million one-off gain from the disposal of an associate a year earlier. Revenue fell 10.2% to RM1.18 billion from RM1.31 billion a year earlier.

The group had declared an interim dividend of five sen less tax, which would be paid on Aug 21. IJM Corp also proposed a two-for-five bonus issue, subject to the approval of shareholders.

For the year, IJM posted a net profit of RM290.21 million compared with net losses of RM420.47 million a year earlier on the back of a marginal decrease of revenue to RM4.6 billion from RM4.64 billion a year earlier.

IJM’s net losses in the financial year ended March 31, 2008 (FY08) were mainly due to a RM940.8 million goodwill impairment and RM225 million one-off capital gains.

Stripping the one-off gain and impairment in FY08, IJM said its net profit in FY09 fell by RM41 million mainly due to the group’s construction division that was affected by higher construction costs.

Commenting on the results, IJM managing director and chief executive officer Datuk Krishnan Tan said: “The Group posted commendable results, after taking into account the rapid and significant rise in building materials cost followed by a marked deepening of the global financial crisis during the year, which had an undeniable impact to our bottom line.”

Going forward, IJM said the business environment for the group’s activities would remain challenging in a volatile market, where input costs continue to fluctuate amid growing global uncertainties.

IJM said its industries division was expected to benefit from increased sales of building materials as the construction sector recovered. With strong property sales yet to be billed, the group’s properties division was expected to achieve a satisfactory performance in the coming financial year, it said, adding that the recent recovery in CPO price augurs well for the group’s plantations division in the coming financial year.

“The group’s prospects are further enhanced by the steady revenue streams contributed by the Malaysian tolling and port operations, though the expected commencement of operations in three toll concessions in India are expected to blunt the overall results of the division,” IJM said.

Meanwhile, IJM Land Bhd’s net profit for the fourth quarter doubled to RM26.69 million from RM13.14 million underpinned by higher revenue of RM226.05 million from RM129.69 million a year earlier. Basic earnings stood at 2.42 sen versus 2.31 sen a year earlier. No dividends were proposed for the current quarter.

For the year, IJM Land’s net profit rose 22.57% to RM51.13 million from RM41.71 million a year earlier. Revenue more than doubled to RM671.01 million against RM295 2 million.

IJM Land said the substantial increase in both revenue and net profit was mainly due to the additional contribution from its newly acquired subsidiary company IJM Properties Sdn Bhd and high-end residential projects, namely Bayu Segar and Bayu Sri Bintang.

IJM Plantations Bhd’s net profit for the fourth quarter fell 80.2% to RM8.49 million from RM42.94 million on the back of a 33% drop in revenue to RM79 million from RM117.9 million a year earlier. Basic earnings stood at 1.33 sen versus 6.74 sen a year earlier. IJM Plantations proposed an interim dividend of eight sen under the single-tier tax system.

IJM Plantations said the fall in revenue was mainly due to the decrease in average CPO selling price by 28.9% to RM1,901 per tonne from RM2,672 per tonne, while fertiliser costs were high during the period.

For the year, IJM Plantations’s net profit fell 13.3% to RM123.19 million from RM142.11 million. Revenue increased marginally to RM491.6 million from RM478.03 million.

This article appeared in The Edge Financial Daily, May 27, 2009.