Tasek 4Q net profit falls 71% on pricing pressure, Malaysia

Tasek Corporation Bhd reported a 71 per cent YoY drop in fourth-quarter 2012 net profit, mainly due to a lower performance of its cement division as a result of pricing pressures and increased competition.

Net profit in the three months to 31 December 2012 fell to MYR26.09m from MYR44.60m the year before. Revenue, however, fell marginally by MYR1.6m to MYR564.5m due to lower sales of clinker and ready-mix concrete. Group pretax profit fell by MYR13m to MYR119.3m the year before due to an underperforming concrete segment as well as higher production costs in the cement segment.

Going forward the company expects infrastructure projects such as the Mass Rapid Transit (MRT) and Light Rail Transit (LRT) which were launched in the second half of last year, to be the main contributors to the construction sector’s performance.

Tasek Corp has a cement capacity of 2.3Mta at its plant located in the Tasek Industrial Estate, Ipoh.