Boustead Holdings' Q1 net profit drops 33.23%

PETALING JAYA: Boustead Holdings Bhd net profit fell 33.23% to RM66.7 million in the first quarter ended March 31, 2014 from RM99.9 million a year ago, as lower revenue recorded across heavy industries, property and pharmaceutical segments.
Revenue, meanwhile, decreased 1.24% to RM2.50 billion from RM2.53 billion.
In a filing with Bursa Malaysia, Boustead said its plantation division was the major earnings contributor, with a higher pre-tax profit of RM40.5 million compared with RM30.9 million a year before, thanks to better average crude palm oil (CPO) price of RM2,629 per metric tonne, which was higher than RM2,335 in the corresponding period.
It expects CPO price to strengthen on demand from biodiesel programme in Malaysia and Indonesia. The other positive factor would be the forecast adverse weather which may tighten supply.
Overall, Boustead expects CPO price for the current year to remain attractive, while the diversified nature of the group's businesses in six segments would enable a delivery of a satisfactory set of results.