Hong Leong Industries falls into the red on MNI impairment cost - Business News | The Star Online

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Hong Leong Industries falls into the red on MNI impairment cost


ong Leong Industries, through 69.4% owned Hong Leong Yamaha Motor Sdn Bhd, makes and distributes motorcycles.

ong Leong Industries, through 69.4% owned Hong Leong Yamaha Motor Sdn Bhd, makes and distributes motorcycles.

KUALA LUMPUR: Hong Leong Industries Bhd (HLI) swung to a loss of RM104.57mil in the fourth financial quarter (Q4) ended June 30 after including an impairment provision of RM172mil for its investment in Malaysian Newsprint Industries Sdn Bhd (MNI).

HLI, which reported earnings of RM69.49mil a year earlier, made the full impairment provision after 33.65%-owned MNI began creditors’ winding-up proceedings recently.

On Monday, Media Prima also announced a net loss for the quarter ended June 30 - which amounted to RM132.91mil - after making a RM142.4mil impairment provision for its 21.4% stake in MNI.

In its quarterly financial report to Bursa Malaysia, HLI said that excluding the one-off full impairment , the group recorded a profit before taxation (PBT) of RM79mil in the quarter under review against a PBT of RM97mil for the previous corresponding period.

The group, which is engaged in the manufacture of Yamaha motorcycles, ceramic tiles, fibre cement boards and concrete roofing tiles, said revenue for Q4 was marginally lower at RM569.01mil versus RM573.6mil a year earlier.

For the full financial year ended June 30, 2017, HLI’s earnings were more than halved (-58%) to RM103.09mil, while revenue grew 4% to RM2.28bil.

Excluding the impairment cost, the group’s PBT was higher at RM364mil compared with RM343mil in the preceding year, it noted. It would have been its highest annual PBT in more than five years.

It said the increase was mainly due to a larger profit contribution from an associated company.
 

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