OSK Holdings sees 85.6% plunge in 3Q net profit

KUALA LUMPUR (Nov 30): OSK Holdings Bhd's net profit for the third financial quarter ended Sept 30, 2016 (3QFY16), plunged 85.6% to RM54.9 million or 3.96 sen a share from RM381.4 million or 31.35 sen a share a year earlier.

Revenue fell 1.2% to RM271.2 million from RM274.6 million, OSK Holdings said in a bourse filing today.

For the cumulative nine months (9MFY16), net profit fell 64.7% to RM168.2 million from RM476.1 million in 9MFY15. Revenue more than tripled to RM929 million from RM302.2 million.

The previous period's profit included gains of RM363.2 million negative goodwill arising from the acquisitions of OSK Property Holdings Bhd and PJ Development Holdings Bhd.

Going forward, OSK Holdings said the remaining period of the year will be challenging for the group.

"Despite the unfavourable economic climate in Malaysia, the board expects the group to achieve satisfactory results," it added.

At 3.24pm, OSK Holdings remained unchanged at RM1.45 with 198,800 shares transacted for a market capitalisation of RM1.98 billion. — theedgemarkets.com