Sime Darby Reports Pre-Tax Profit Of RM1.7 Billion For 1H FY08/09

KUALA LUMPUR, 26 February 2009 - Sime Darby Berhad reported a pre-tax profit of RM1.7 billion for the 1H FY08/09, a reduction of 24% over the same period during the last financial year.

The Group revenue declined by 2% to RM16 billion while net profit after tax and minority interests decreased 18% to RM1.15 billion, as compared to 1H FY07/08.

The decline in profit was mainly attributable to the Plantation Division, which recorded a decrease of 28% in operating profits compared to the same period last year, as a result of the decline in the average selling price of crude palm oil (CPO).

However, the Industrial Division performed strongly during the period under review despite the weak global economy and the negative impact of the weak Australian dollar.  Operating profit increased by 23% to RM436 million, mainly due to the strong South East Asian and Australasia operations.

Commenting on the results, Dato' Seri Ahmad Zubir Murshid, President & Group Chief Executive of Sime Darby, said: "The results were within our expectations as we are operating in a global economic environment that has weakened considerably. Our diversified portfolio of businesses has helped cushion the impact of the downturn, whereby the decline in performance of the Plantation Division was offset by the strong performance of the industrial division."

He added that the second half of the financial year is expected to be very challenging for Sime Darby and as a result Sime Darby has doubled its efforts to improve operational efficiency and reduce costs.
 
Dato’ Seri Ahmad Zubir also emphasised the Group’s commitment and focus on its five core businesses. "We continue to review opportunities to expand our core businesses especially those that emerge as a result of this downturn. However, the emphasis will continue to be in long-term stable cash flow businesses."

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