MMC Corp 2Q profit up 25.3% at RM187.17m

KUALA LUMPUR: MMC Corp Bhd posted profit of RM187.17 million for the second quarter ended June 30, 2010, which was 25.3% higher compared with RM149.35 million a year ago.

The company announcement on Tuesday, Aug 24 showed that profit attributable to owners of the company was RM88.12 million when compared with only RM5.85 million a year ago. However, profit attributable to minority interest declined to RM99.05 million from RM143.50 million.

Revenue rose 6.55% to RM2.31 billion from RM2.16 billion, earnings per share were 2.9 sen compared with 0.2 sen.

MMC said there was a writeback for tax expenses of RM11.93 million in the second quarter compared with tax expense of RM33.91 million a year ago.

The accounts also showed available-for-sale financial assets fair value losses at RM25.51 million compared with gains of RM47.39 million a year ago.

According to notes to its accounts, available-for-sale financial assets is measured at fair value initially and subsequently with unrealised gains and losses recognised directly in equity until the investment is derecognised or impaired.  

For the six months ended June 30, the group’s profit before tax of RM385.7 million was higher by RM43.8 million compared to RM341.85 million in the corresponding financial period ended June 30, 2009.

“Lower losses recorded from Engineering & Construction division by RM30.4 million or 31.1% mainly attributed to additional contract revenue recognised from SMART.

“This was mitigated by higher share of losses from an associate, Zelan Berhad attributed to the recognition of losses on contracts for projects in Middle East and Indonesia coupled with impairment loss on goodwill for its engineering and construction division,” it said.

MMC also said lower losses recorded from Corporate & Others division by RM16.2 million or 16.3% mainly driven by the gain on disposal of investment in Integrated Rubber Corporation Bhd. This was offset by higher finance costs at MMC Company level.

“The group recorded a profit before tax of RM175.2 million in the current quarter as compared to RM210.4 million in the preceding quarter. This was mainly due to lower contribution from the transport and logistics division and the absence of gain on disposal of investment in Integrated Rubber Corporation Berhad as in preceding quarter,” it said.
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