KUALA LUMPUR, November 24, 2009 – Boustead Holdings Berhad (Boustead) continued its positive performance into the third quarter of its 2009 financial year with a profit after tax of RM108 million, a 72% increase from the preceding quarter’s profit of RM63 million. This strong result was achieved on the back of a turnover of RM1.4 billion.

For the nine month period under review, the Group registered a profit after tax of RM239 million on the back of a turnover of RM3.9 billion. Earnings per share was 29.1 sen while net assets per share was lower at RM4.08 due to the dilutive effect from the recently concluded rights issue. The Board of Directors has declared a third interim dividend of 7.5 sen which brings total dividend for the 2009 financial year to 17.5 sen or 35%.

YBhg Tan Sri Dato’ Lodin Wok Kamaruddin, Group Managing Director, Boustead Holdings Berhad, said, “Given our third quarter results, clearly the tide and sentiments are turning by virtue of the fact that our earnings are up. The sectors of the economy we are involved in, namely the consumer and the heavy industries segments bode well for the Group while our plantations continue to be a steady revenue generator and profit contributor.”

“Our balance sheet looks strong given our recent rights issue which generated proceeds in excess of RM700 million. Our paid up capital has increased to RM456 million and our gearing ratio has dropped significantly to 0.8 from 1.2 times. In essence, our financial strength is strong while our prospects look better.”

During the quarter under review, the Heavy Industries Division emerged as the main contributor to the Group, registering a profit of RM49 million, an increase of 49% compared with RM33 million in the preceding quarter. This was mainly due to improvements in billings and margins.

The Plantation Division recorded a profit of RM17 million compared with RM10 million achieved in the preceding quarter. For the nine month period, the Division recorded an average palm oil price of RM2,172 per MT, a drop from the RM3,103 per MT in the previous year. Fresh fruit bunches production totaling 827,850 MT was 5% lower than the corresponding period last year.

The Property Division on the other hand recorded a profit of RM19 million, a 15% decrease from RM22 million achieved in the preceding quarter. This was due to the start-up cost of The Royale Chulan Hotel which was opened in April 2009.

The Finance & Investment Division demonstrated a strong improvement, achieving a profit of RM20 million compared with RM6 million achieved in the preceding quarter. The Trading Division registered a profit of RM14 million, a significant increase from the RM4 million recorded in the preceding quarter, largely due to stockholding gains recorded by BH Petrol and profit from the LCCT Baggage Handling system project. The Manufacturing and Services Division on the other hand achieved a profit of RM7 million, consistent with the profit recorded in the preceding quarter.

“As the global recession begins to recede and with recovery on the horizon, the outlook for the Malaysian economy is expected to improve. Given the diversity of the Group, our improving financial results and the fact that we are seizing opportunities from an organic growth perspective, we are positive with our delivery moving forward,” 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 90 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 30 September 2009, Boustead Holdings Berhad’s paid-up capital is RM456 million, while its shareholders’ funds stand at RM3.7 billion. Market capitalisation currently is in excess of RM3.1 billion.

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 statements.


Issued on behalf of: Boustead Holdings Berhad—– By: acorn communications sdn bhd
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