Oriental Interest 2Q net profit drops 206%

KUALA LUMPUR: Property developer Oriental Interest Bhd reported a net loss of RM883,000 for its second quarter (2Q) of its financial year ending Jun 30, 2011, a drop of 206% from a net profit of RM832,000 for the same period a year ago due to declining sales, high materials cost and adverse foreign exchange movement experienced by manufacturing division.

In a filling to Bursa Malaysia on Tuesday, Feb 8, the company posted revenue of RM19.9 million for the quarter under review, an increase compared to RM19 million reported in the same quarter last year. Basic earnings per share were -0.98 sen, compared to 0.92 sen the year before.

For the six months under review, Oriental Interest reported a net profit of RM9,000, a drop of 99.65% from RM2.54 million in the preceding year corresponding period. Revenue also dropped to RM41.3 million in FY2011, compared to RM45.9 million the year before.

On future prospects, the company remains optimistic that it would be profitable in FY2011, adding that the property division would remain focus on prudent risk management. It added that the manufacturing division is embarking on new business strategy and other alternatives available.