Malaysia's IOI Corp Reports 85 PCT Jump in Q1 Pre-Tax Profit

15 Nov 2007

KUALA LUMPUR, Nov 15 Asia Pulse - IOI Corporation Berhad (KLSE:1961) has booked pre-tax profit of RM628.3 million (US$187.5 million) for the first quarter of the 2008 financial year, an increase of 85 per cent from RM338.7 million a year earlier due to better performance of all major business segments.

Group revenue for the three months ended 30 Sept 2007 surged 64 per cent on-year to RM628.251 million as the business segments reported increases in revenue as a result of higher palm oil prices, increased volume for resource-based manufacturing as well as higher sales of properties.

Earnings per share climbed to 7.37 sen from 4.22 sen last year.

In a filing to Bursa Malaysia on Nov 15, IOI Corp said plantation earnings of RM397.5 million was 134 per cent higher than that of last year, boosted by significantly higher crude palm oil (CPO) prices.

Average CPO prices realised for the current quarter was RM2,473 per MT as compared to RM1,483 per MT for the same quarter last year.

The resource-based manufacturing segment reported a 33 per cent increase in operating profit to RM122.8 million with the inclusion of profit from Pan Century Group as well as volume growth.

It said the property segment continued to perform well with a 37 per cent jump in operating profit to RM109.7 million from RM80.1 million previously, driven mainly by higher demand for commercial and high-end residential properties.

Overall, the group achieved net earnings of RM451.5 million for the current quarter, a 77 per cent increase over the RM255.7 million recorded for the previous corresponding quarter.

It said the percentage increase of the group's net earnings level is lower than the percentage increase of the group's pre-tax level due mainly to higher tax expense as a result of the expiry of certain tax incentives granted by the tax authority at the end of FY 2007.

Barring unforeseen circumstances, IOI Corp expects all business segments to further improve in performance for the financial year ending 30 June 2008.

"The plantation segment in particular, is expected to benefit from higher trending palm oil prices," it said

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