IJM’s third quarter bottom line falls 46%

PETALING JAYA: IJM Corp Bhd’s net profit fell 46% to RM138.36 million for the third quarter ended Dec 31, 2016 against RM256.1 million in the previous corresponding period, due to the absence of a one-off gain from the disposal exercise as well as lower contributions from its plantation and port concession divisions. Revenue was up 10.9% from RM1.44 billion to RM1.6 billion.
In a filing with the stock exchange, the group said it expects the construction division to perform satisfactorily on the current level of its high order book, underpinned by substantial ongoing development activities from in house property projects and ongoing projects under the 11th Malaysia Plan.
The property market, meanwhile, is seen to remain challenging due to the weak consumer sentiments but is expected to maintain a reasonable performance with unbilled sales of about RM1.76 billion.
IJM foresees its plantation division to perform better on the back of high commodity prices.
The group’s nine-month net profit fell 44.2% from RM749.35 million to RM417.77 million. Revenue came in at RM4.4 billion, 11% higher than the RM3.96 billion it made a year ago.