Evergreen Fibreboard Q2 net profit falls more than two third

PETALING JAYA: Evergreen Fibreboard Bhd saw net profit for the second quarter ended June 30, 2017 fall more than two third to RM6.2 million mainly due to lower sales revenue, higher log and glue cost and foreign exchange loss, compared to a gain in the corresponding quarter of the preceding year.
Production volume was reduced as a result of shortage supply of rubber wood and scheduled plants shut down for maintenance during the
Ramadan festive period.
The company made a net profit of RM16.5 million for the second quarter ended June 30, 2016.
This was despite revenue increasing 5.2% to RM260 million for the quarter, compared with RM246 million for the same quarter in the preceding year.
The stock closed half a sen lower to 82 sen today, on 2.2 million shares done. It has a market capitalisation of RM693.7 million.
Evergreen said the Malaysian government's recent move to ban export of raw rubber wood sawn timber and the long overdue drier season
should normalize the supply of logs, which had not only reduced group's production output but also crimped margins.
"The group expects a satisfactory performance moving forward," it said.
Net profit for the six month ended June 30, 2017 more than halved to RM16.7 million, compared with RM37.1 million for the same period in 2016.
This was despite revenue going up slightly to RM508.5 million, compared with RM493 million for the same period in the year before.