KUALA LUMPUR (May 29): Sime Darby Bhd, which is now focused on industrial, motors, logistics and healthcare businesses, saw its net profit jump 64.4% to RM222 million in the third financial quarter ended March 31, 2019 (3QFY19) from RM135 million a year ago, largely driven by the industrial division’s strong performance.

This resulted in a higher earnings per share of 3.3 sen for 3QFY19 compared with 2 sen for 3QFY18.

Quarterly revenue was also up 3.3% to RM8.57 billion from RM8.29 billion in 3QFY18.

In a filing with Bursa Malaysia today, Sime Darby said profit at its industrial division rose 171.4% on the back of the recovery in the mining and construction sectors in Australia, with higher sales and margins.

However, the group's net profit for the cumulative nine months (9MFY19) more than halved to RM764 million from RM1.76 billion a year ago, even though revenue grew 6.3% to RM26.83 billion from RM25.25 billion in 9MFY18. The lower earnings was due to profit from discontinued operation of RM1.38 billion recorded in 9MFY18.

In a separate statement, Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said in 9MFY19, the group benefitted from the upturn in the Australian mining industry, which boosted equipment deliveries and contributed to higher margins from equipment and parts sales for the industrial division.

"This provided some respite from the headwinds experienced by the motors division due to the challenging automotive markets in China and Singapore," he added.

On prospects, Sime Darby expects its performance for the full financial year ending June 30, 2019 to be better than that of the previous financial year.

However, it warned that China’s slowing economic growth will limit the growth prospects of regions in which the group operates, mainly Australasia, China and Southeast Asia.

At midday break today, Sime Darby shares fell 3.39% or 8 sen to RM2.28 with 2.25 million shares traded.