SIME DARBY Q3 NET PROFIT SLIPS 48.2 PCT TO RM115 MLN

KUALA LUMPUR, May 21 -- Sime Darby Bhd recorded a net profit of RM115.00 million in the third quarter ended March 31, 2020, down 48.2 per cent from RM222.00 million recorded in the same period a year ago.

Revenue slipped to RM8.43 billion versus RM8.56 billion previously, while basic earnings per share dropped to 1.70 sen from 3.30 sen before.

On prospects in the final quarter of its financial year ending June 30, 2020 (FY20), Sime Darby expects the group's business to be adversely affected by the coronavirus outbreak.

“Movement control laws and closure of certain operations in several countries such as Malaysia, Singapore and New Zealand have significantly impacted sales. In China, the operations have reopened after the extended Chinese New Year break but infection prevention and control measures remain.

“The mining-related operations in Australia continues to operate as it is considered an essential business. However, consumer and business sentiment have also been adversely impacted in these countries,” it said.

The group’s strong financial performance in the first half of FY20 would help mitigate the effects of the adverse impact of the coronavirus outbreak.

Overall, Sime Darby said the deadly pandemic would have a significant adverse impact on global economic activities as countries around the globe implemented movement control laws and closed non-essential businesses.

It  caused supply and demand shocks with disruptions to the global supply chain, and the weak economic outlook has also resulted in cautious consumer spending.

At lunch break, Sime Darby shares declined 0.50 per cent to RM2.

-- BERNAMA