Sime Darby Q3 net earnings decline nearly 50%

PETALING JAYA: Sime Darby Bhd posted a 48.2% drop in net profit for the third quarter ended Mar 31 to RM115 million, from RM222 million, due to lower revenue and profits from the group’s industrial and motors

divisions in Greater China, despite gains in its Australian industrial operations.

Revenue dipped 1.6% to RM8.43 billion, from RM8.57 billion previously.

Group CEO Datuk Jeffri Salim Davidson said its operations in China are now almost back to normal.

“Demand for cars and hydraulic excavators there appears to have rebounded and both the motors and industrial operations have had a relatively strong April. And in Australia, where mining is an essential industry, our customers have continued to depend on Hastings Deering to provide support to ensure that their mining trucks are running smoothly,” he said.

For the nine month period, the group’s net profit stood at RM643 million, from RM764 million a year before while revenue rose to RM28.11 billion, from RM26.83 billion.

Looking ahead, Sime Darby said the impact of the coronavirus outbreak in the longer term cannot be accurately estimated at this juncture as there are still significant uncertainties on how and when the outbreak would be contained and full business activities will resume.