Muhhibah Engineering net profit declines 23% to RM10.78m for 2Q2010

KUALA LUMPUR: Muhibbah Engineering (M) Bhd saw its net profit decline by 23% to RM10.78 million from RM14.14 million a year ago for its second quarter ended June 30, 2010 (2Q).

The decline in net profit was on the back of a 20% drop in revenue of RM463.28 million in 2Q compared with RM580.6 million a year ago, it announced on Bursa Malaysia on Monday, August 30.

Year-to-date, the group posted a net profit of RM28.27 million, falling 41% from RM48.01 million a year ago, underpinned by a 9% drop in revenue to RM873.85 million from RM961.79 million a year ago.

Its basic earnings per share stood at 2.73 sen, down from 3.72 sen a year.

In notes accompanying the announcement, the group said its shipyard and concession divisions continue to be its main earnings drivers.

It said as at Aug 23, its total outstanding secured order book is valued at RM2.53 billion, with RM1.6 billion from its infrastructure construction division, RM484 million from its shipyard division and RM450 million from its cranes division.

The total order book is expected to sustain the group until 2013.

On its outlook, the group said it would continue to implement measures and strategies to ensure its sustainability in the face of a volatile and challenging global business environment.

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