BCB post pre-tax profit of RM1.04m for 2Q2010

KUALA LUMPUR: BCB Bhd posted a pre-tax profit of RM1.04 million in its second quarter (2Q) ended June 30, 2010, 39.8% lower compared with RM1.73 million posted for the corresponding period last year, mainly due to the impairment of about RM470,000 made on certain inventories of a subsidiary in Kluang.

It said on Monday, Aug 23 that in addition to the impairment, an inventory clearing exercise undertaken by BCB since the beginning of the financial year had resulted in its inventory level being reduced by RM4.6 million in the quarter under review.

However, the pre-tax profit in 2Q is higher compared with the preceding quarter's posting of RM370,000.

The group’s turnover has increased by 19.96% to RM29.26 million from RM23.4 million in the preceding quarter, mainly attributed to better sales and response to the group’s products.

The group is optimistic of achieving better sales in the next financial year, adding that the sales of newly launched phases in its mature township have not been materially affected despite the gloomy outlook following the financial downturn.