KUALA LUMPUR: Century Logistics earnings fell 3.5% to RM3.85mil in the third quarter ended Sept 30, 2017 and amid the challenges ahead, it is pushing ahead with its parcel delivery operation which is expected to start by the first quarter of next year.
The company had on Friday announced the earnings had declined from RM4mil a year ago. Its revenue slipped to RM72.52mil from RM73.55mil due to the lower activities of the procurement logistics services segment.
Earnings per share were 0.98 sen compared with 1.05 sen.
On the outlook, it said the logistics sector was expected to remain challenging in 2017. It plans to leverage on its extensive customer base and internal strength by providing value-added logistics solutions, while maintaining cost efficiencies.
“Following the ongoing synergy process, the group also intends to tap on the extensive network and infrastructure of its major shareholder, CJ Logistics Group.
“The group is currently setting up the necessary infrastructure to roll out its parcel delivery operation and expects to commence the operation by the first quarter of year 2018,” it said.
For the nine months, its earnings fell 15.6% to RM11.718mil from RM13.89mil in the previous corresponding period. Its revenue fell 4.5% to RM215.49mil from RM225.66mil.
On the procurement logistics services, total revenue dipped 5% to RM215.49mil while operating profit fell 15% to RM17.11mil.
Century Logistics said the total logistics services operations reported a decline of RM5.14mil in revenue to RM183.12mil. Segment profit fell by RM1.24mill mainly due to the lower activity in the segment.
Its procurement logistics operations recorded lower revenue of RM32.37mi from RM37.39mil a year ago due to lower activity in the segment. Its profit fell 41% to RM2.57mil from RM4.40mil.
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