Sime Darby’s 3Q earnings boosted by Australian sales

The multinational’s industrial division posted a strong quarterly performance thanks to its Aussie operations

by AZALEA AZUAR / pic by MUHD AMIN NAHARUL

AUSTRALIAN miners helped Sime Darby Bhd post a 64.4% year-on-year (YoY) rise in net pro t to RM222 million for the third quarter ended March 31, 2019 (3Q19).

The multinational’s industrial division posted a strong quarterly performance, thanks to its Australasian operations where miners and the construction sector increased spending.

“We expect the improved conditions to continue as miners increase expenditure for both equipment replacement cycles and expansion,” group CEO Datuk Jeffri Salim Davidson (picture) said in a press statement yesterday.

The upturn in the Australian mining industry has helped raise margins on industrial equipment and sales of parts, as well as enhance equipment deliveries.

The group’s motor division continues to face challenges in China and Singapore despite sales of Ford and BMW brands are rising.

The group is hoping new model launches will fuel growth of the division in the months ahead.

Group revenue for the three months rose 3.3% YoY to RM8.6 billion. Net profit for the nine months rose 67% YoY to RM764 million, while revenue stood at RM26.8 billion.

Its healthcare unit’s, Ramsay Sime Darby Health Care, share of profit was reduced to RM42 million as a result of tax adjustments from the pre-vious quarter.

The recognition of the arbitration award received for the Oil and Natural Gas Corp’s wellhead project of RM26 million and a disposal of trademark gain of RM17 million were also included into the group’s results for the current quarter.