IJM releases Financial Results for the Quarter Ended 31 December 2015

Petaling Jaya, 25 February 2016: IJM Corporation Berhad (“IJM”) today released its financial results for the third quarter ended 31 December 2015. Group consolidated revenue stood at RM1,439.9 million, representing an increase of 7.5% from RM1,339.4 million reported in the same quarter a year ago mainly due to improved performance from the Construction, Industry and Infrastructure divisions. The Group’s profit before tax increased by 33.9% to RM372.5 million as compared to the same quarter last year on account of higher contributions from the Construction, Plantation and Infrastructure divisions.

For the quarter, revenue of the Construction division increased to RM485.2 million, 150.7% higher than the same quarter last year, following increased contributions from projects that were secured in the previous year. The Property division reported lower revenue by 41.1% to RM306.0 million as compared to the same quarter in the previous year due mainly to lower sales recorded as well as the completion of certain projects in the preceding year.  Revenue of the Industry division increased by 5.6% to RM231.7 million due to higher delivered tonnage of spun piles while the Plantation division saw revenue decline by 15.1% to RM155.7 million due to lower average commodity prices and lower sales volume achieved in the quarter as compared to the same quarter last year. The Infrastructure division recorded an increase in revenue of 17.1% to RM261.3 million compared to the same quarter last year due mainly to continued traffic growth at its Malaysian toll road concessions as well as higher cargo revenue recorded by the Group’s Port concession.

Quarterly PBT of the Construction division increased 77.7% to RM34.8 million as compared to the previous year’s corresponding quarter in tandem with the increase in revenue. Pre-tax profits for the Property division decreased 85.3% to RM20.5 million due to the lower revenue as well as unrealised foreign exchange loss of RM10.7 million as opposed to a gain of RM5.2 milion in the same quarter last year and a one-off gain on remeasurement of existing equity interest in Larut Leisure Enterprise (Hong Kong) Ltd amounting to RM17.2 million recognised last year. The Industry division saw a 14.4% decrease of its pre-tax profits to RM22.8 million mainly due to lower margins in the quarrying and ready mixed concrete sectors. Despite a decrease in CPO price and sales volume, pre-tax profit of the Plantation division increased to RM53.6 million due mainly to a net foreign exchange gain of RM35.3 million in the quarter resulting from a weakening of the US Dollar against the Indonesian Rupiah. 

Profits of the Infrastructure division, in the quarter, was boosted by the gain derived from the disposal of the Group’s 70% equity interest in Swarna Tollway totalling RM133.3 million as well as a foreign exchange gain of RM29.5 million arising from favourable foreign exchange movements in the quarter.

Commenting on the Group’s prospects, IJM’s Managing Director & CEO Dato’ Soam Heng Choon said that “The performance of the Construction and Industry divisions are expected to be underpinned by relatively strong private sector demand and the Malaysian Government’s continued emphasis on infrastructure spending whereas the Property and Plantation divisions continue to operate in challenging environments due to weaker consumer sentiment and dry weather affecting crop production respectively. The Group Infrastructure division continues to provide a growing recurrent income stream as the concessions mature.”

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About IJM Corporation Berhad
IJM Corporation Berhad (“IJM”), formed in 1983, is today one of Malaysia’s leading construction groups and is listed on the main board of Bursa Malaysia. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations. 

Headquartered in Selangor, its operations are located in 10 countries, with primary focus in Malaysia, India and Indonesia. The Group presently has a market capitalisation of around RM12 billion and as of December 2015, the Group employed around 4,600 employees and had total assets of RM20.0 billion. 

The Group’s belief in a shared destiny with its employees remains pivotal to its growing success while its reputation for professionalism, performance and good governance is acknowledged by customers and investors alike from its numerous corporate and industry accolades. IJM is committed to ethical business conduct and subscribes to the principles of good corporate citizenship for sustainable growth and development.

For more information, visit www.ijm.com