BOUSTEAD CONFIDENT AMIDST TRYING TIMES
LUMPUR, April 2, 2009 - Having completed sterling results in
the challenging financial year of 2008, Boustead Holdings Berhad,
(Boustead Group) is positive on its outlook for 2009 despite trying
For its just concluded financial year, the Group recorded a profit
after tax of RM668 million for the year ended 31 December 2008.
Earnings per share was 91 sen while net assets per share were RM4.47.
Total dividend payout for the year was 30 sen per share.
YBhg Tan Sri Dato'í Lodin Wok Kamaruddin, Group Managing Director,
Boustead Holdings Berhad, said, "Our key divisions have performed
more than satisfactory with plantation, property and heavy industries
leading the way in delivering the bulk of the Group's profits. In
addition, our conscientious strategy to increase our stake in key
operating businesses have brought us significant positive results
due to the drop in minority interest and reduction in tax expenses."
"The Boustead Group has remained focus in its involvement of
its core business being the Plantation Division. Profits from this
Division has jumped to RM270 million compared with the previous
financial year of RM201 million. In spite of the decrease in crude
palm oil prices during the second half of the financial year, the
Division recorded a higher average selling price of RM2,794 per
MT in comparison with the RM2,279 per MT achieved in 2007, representing
an increase of 23% on a year-on-year basis. In essence, we are confident
that our efforts to improve oil extraction rates, reduce cost and
increase prime mature fields will assist the Group during these
The Group's Heavy Industry Division recorded a profit of RM184 million
even with lower progress billings on the vessel construction project
undertaken by Boustead Naval Shipyard Sdn Bhd.
The Property Division recorded its best profit to date with a remarkable
73% jump in profit to RM147 million as compared with RM85 million
last year. This was largely due to the sale of corporate lots at
the highly sought after Mutiara Damansara development in Selangor.
The Manufacturing and Services Division also recorded a profit of
RM20 million compared with RM10 million achieved last year despite
the overall slowdown in domestic demand.
In addition, the Group surpassed most of its key performance indicators
for Government Linked Companies. The Groupís Return on Equity was
22.2% versus our target of 14%. Return on Assets was 9.7%, marginally
off against the target of 11% while Dividend payout was 60% versus
our target of 40%.
"For this financial year we will increase our resolve to work
harder, implement more innovative ideas and review cost structures.
We will not be retrenching, neither will we freeze increments and
be negative about what lies ahead. At the same time, we are aware
that it will be a volatile year. However, with our diversified business
portfolios, I am confident that we will remain profitable, it may
be less than the last financial year, but there will be profit,"YBhg
Tan Sri Dato' Lodin concluded.
Since its inception as a modest trading entity more than 180
years ago, the Boustead Group has grown by leaps and bounds to comprise
more than 80 subsidiary and associate companies, and has substantial
interests in various sectors of the Malaysian economy. The Boustead
Group's operations are focused in six key areas; plantation, heavy
industries, property, finance & investment, trading and manufacturing
& services. As at 31 December 2008, Boustead Holdings Berhad's paid-up
capital is RM326 million, while its shareholders' funds stand at
Forward looking statements
This release may contain certain forward-looking statements with
respect to the financial conditions, results of operations and business
of the Group and certain plans and objectives of Boustead Holdings
Berhad with respect to these items. By their nature, forward-looking
statements involve risk and uncertainty because they relate to events
and depend on circumstances that will occur in the future and there
are many factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
on behalf of: Boustead Holdings Berhad By: acorn
communications sdn bhd
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