Lafarge Malayan 2Q falls 10% on lower revenue

Lafarge Malayan 2Q falls 10% on lower revenue
Published: 21 September 2010

Lafarge Malayan Cement Bhd’s net profit fell 10% to RM75.6 million in its second quarter ended June 30, 2010 (2QFY10) from RM84.3 million a year earlier mainly due to a 6% decline in revenue and a more than doubling of tax expense to RM16.8 million from RM7.6 million previously.

At the pre-tax level, profit rose slightly to RM91 million from RM90 million a year earlier due to tighter control on operating costs, lower plant maintenance costs and domestic cement price adjustment in May 2010.

Revenue fell 6% to RM591.2 million from RM630.9 million due to lower export volume and prices. Basic earnings per share fell to 8.9 sen from 9.9 sen. Net assets per share fell to RM3.67 as at June 30 from RM3.76 as at end-FY09.

It declared a second interim single-tier dividend of eight sen per share versus 15 sen single-tier a year earlier. The entitlement date is Sept 15 and payment date is Oct 13.

Quarter-on-quarter, pre-tax profit improved by RM34 million due to better domestic prices, lower plant maintenance costs and non-recurrence of certain one-off plant repair costs and expenses, while revenue rose 8% due to higher domestic cement sales and domestic selling prices.

For the six months to June 30 (1HFY10), net profit fell 30% to RM123.7 million from RM175.7 million a year earlier due to lower revenue, lower contributions from the ready-mixed concrete operations and certain non-recurring plant repair costs and expenses.