BHIC SEES SLIGHT IMPROVEMENT IN REVENUE

KUALA LUMPUR, 12 August 2011 – Boustead Heavy Industries Corporation Berhad (BHIC) recorded revenue of RM120.8 million for its second quarter ended 30 June 2011, a slight increase compared with RM116.7 million reported for the previous quarter.

The Group registered a profit after taxation of RM6.2 million for the current quarter under review. Although the revenue was higher, the reduction in profit was mainly attributed to cost escalations in completing current projects which include commercial shipbuilding and increase in finance charges for recent acquisitions coupled with lower contribution from associates with the successful completion of the patrol vessel project.

Tan Sri Ahmad Ramli Mohd Nor, Managing Director of BHIC said, “Our recently established joint ventures, namely Boustead DCNS Naval Corporation Sdn Bhd, BYO Marine Sdn Bhd and Contraves Advanced Devices Sdn Bhd, contributed positively to the Group’s results. We are optimistic that this trend will follow through in the coming quarters of the financial year. The Group is also working towards ensuring the completion and delivery of other ongoing jobs.”

The Group will continue its cost reduction efforts, particularly in the optimisation of human resource costs through operational efficiency, and optimisation of material costs through its transformation strategy.

Tan Sri Ramli concluded, “We will continue in developing the functional and management skills of our staff through comprehensive training and development programs to achieve our key performance indicators.”

-ends-


Boustead Heavy Industries Corporation Berhad is a subsidiary of Boustead Holdings Berhad, a conglomerate listed on the Main Board of Bursa Securities. Boustead Holdings Berhad is a subsidiary of the Armed Forces’ Funds (Lembaga Tabung Angkatan Tentera).

The Boustead Heavy Industries Group is involved in maritime, defence and heavy engineering activities, with shipyards located in Lumut, Pulau Pinang, Langkawi and Ghana.

Issued on behalf of: Boustead Heavy Industries Corp. Bhd.
By: acorn communications sdn bhd
For further information, please call:
Natalia Ghani at 012 231 4782 or Sheetal Bains at 03 7958 8348
or email: acorncommunications@acornco.com.my