KUALA LUMPUR: KUALA LUMPUR: Sime Darby Bhd's third quarter net profit was RM150.57 million compared with RM1.09 billion a year ago, due to lower average crude palm oil (CPO) prices and lower production and the group cautioned that its performance for the current FY would be lower that the previous year.

Announcing a set of weaker results on May 25, it said despite the group's lower performance, it would be satisfactory under the current market condition.

Sime Darby said revenue fell to RM7.47 billion compared with RM8.64 billion. Earnings per share were 2.51 sen from 18.13 sen.

For the nine months, net profit was RM1.29 billion, down 48% compared with RM2.49 billion in the previous corresponding period. Revenue declined to RM23.47 billion from RM24.92 billion.

"The lower contribution was largely attributed to the weaker performance of the plantation division, which recorded a 55% decrease in operating profit to RM1.25 billion compared to the previous corresponding period, due to lower average CPO prices realised and lower production experienced across the whole industry as a result of biological tree stress," it said.

The current global economic slowdown which has resulted in lower world demand for all commodities has generally adversely affected all the group's business segments.

Sime Darby said despite the global slowdown, the Industrial Division continued to perform strongly with operating profit increasing by 29% to RM624 million compared to last year, mainly from its Southeast Asian and Australasia operations.

"Going forward, our order book until the end of calendar year 2009 is expected to remain strong," it said. The cyclically sensitive automobile and property markets have also begun to show improvement.  

President and group chief executive of Sime Darby, Datuk Seri Ahmad Zubir said the property division's marketing and sales efforts during the Parade of Homes Sales Campaign showed positive results.

On the outlook, he said there remains considerable uncertainty in the economic environment, "but we are poised to take advantage of any recovery".