IJM Corp profit rises 58% in 3Q

KUALA LUMPUR: IJM Corporation Bhd recorded RM132.2 million profit for the third quarter ended Dec 31, 2010 (3QFY11), an increase of 58% from RM83.64 million recorded in the same period a year ago due to strong contributions from its property and plantation divisions.

Group revenue declined by 3.7% to RM901.3 million from RM936.3 million a year ago while its earnings per share rose from 6.32 sen to 9.78 sen.

Its nine-month profit also rose 54% to RM341.5 million from RM221.5 million a year ago, up 54%. Its revenue, however, fell by about 15% from RM3.14 billion to RM2.67 billion.

IJM Corp said the decrease in construction revenue was mainly caused by delays in some of its overseas projects while progress at local major projects such as the Grand Hyatt in Kuala Lumpur and Besraya Highway Extension had yet to reach full swing.

The development of The Lights in Penang, the flagship property development of subsidiary IJM Land Bhd, is still in its early stages.

However, the company stated that the construction division’s performance is expected to improve as order book replenishment prospects remain encouraging.

The property division is also expected to grow due to improved consumer sentiment, attractive mortgage environment. Unbilled sales are also expected to help deliver better results for the division.

Higher CPO prices continue to augur well for its plantation arm. The average realised price of CPO was RM2,671 per tonne compared with RM2,205 per tonne in the previous corresponding period.

With the current financial year ending in March, the division is expected to contribute favourable results.