Comments: Oreintal continue to build up huge positive cash flow. Latest free cash
in bank is stand as RM 1.48 billion.
Review of earnings and/or revenue of the Company and its subsidiaries for current quarter and financial year-to-date
The year-to-date revenue of RM2,054.7 million was 2.0% higher than the corresponding period
last year with year-to-date profit before tax of RM226.6 million, a 17.8% higher than the corresponding period last year.
The performance of the automotive retailing subsidiaries for both Malaysia and Singapore was in tandem with the overall sentiment of the motor industry. The motor vehicle sales in Malaysia
continued to be affected by lower vehicles sales. However, motor vehicle sales in Singapore were at the same level as previous quarter. The performance of other non-automotive related subsidiaries in the Group was slightly better. Due to the favourable exchange, the performance of the overseas plantation improved significantly as compared to last quarter. The performance of the hotel and resort sector was cyclical and due to the cold weather, the contribution was wer this quarter.
Material Change in Profit Before Taxation ("PBT") reported on as compared with the immediate preceding quarter
The Group’s PBT for the second quarter of 2007 was RM137.9 million as compared to RM88.7 million in the preceding quarter. The Group’s revenue for the second quarter of 2007 was RM1,048.8 million when compared to RM1,005.9 million in the preceding quarter.
The Group’s PBT for the second quarter of 2007 increased by RM49.2 million or 55.5% and the revenue increased by RM42.9 million or 4.3% when compared to the preceding quarter.
The higher crop production and the slightly higher CPO prices helped to improve the operating profit and together with the favourable foreign exchange, contribution from the overseas plantation improved significantly for this quarter. Revenue and contribution from the automobile retailing in Singapore remained at the same level as previous quarter. The low vehicles sales resulted in drop in revenue and contribution of the automotive retailing in Malaysia. Performance of the hotel and resort sector was slightly lower compared to the peceding quarter.
Current year prospects
The performance of the plantation subsidiaries is expected to improve further with the increase
in crop production, provided that the CPO prices stay at the current level and foreign exchange remains favourable. The performances of the automotive related subsidiaries are expected to be in tandem with the industry trend. The revenue and the contribution from the overseas subsidiaries in the tourism and hospitality industry are expected to improve. Barring unforeseen circumstances, the Board of Directors expects the Group’s performance for Year 2007 to be satisfactory.
The performance of the plantation subsidiaries is expected to improve further with the increase
in crop production, provided that the CPO prices stay at the current level and foreign exchange remains favourable. The performances of the automotive related subsidiaries are expected to be in tandem with the industry trend. The revenue and the contribution from the overseas subsidiaries in the tourism and hospitality industry are expected to improve. Barring unforeseen circumstances, the Board of Directors expects the Group’s performance for Year 2007 to be satisfactory.
