KUALA LUMPUR: Tasek Corp Bhd posted a lower third quarter net profit of RM1.89mil, compared to earnings of RM7.56mil in the same quarter last year as revenues suffered from reduced demand for cement and lower product prices.
The company announced that net revenue for the quarter was RM146.55mil compared to RM149.13mil in the previous-year quarter.
This result brings Tasek's year-to-date net profit to RM6.93mil, which is significantly lower than RM48.2mil posted in the first three quarters of 2016.
Earnings per share stood at 5.69 sen for three quarters so far this year, compared to 39.66 sen in the 2016 period.
In its segmental breakdown, the cement segment showed a net loss of RM2.7mil, compared to an operating profit of RM3.6mil in the year-ago quarter. For the nine months so far this year, the segment reported an operating loss of RM3.4mil on lower revenue.
"The cement segment's net revenue of RM302.3mil for the current period to date was RM89.7mil lower compared with the corresponding period of the previous year mainly due to the lower demand for cement and lower pricing arising from the prolonged pricing competition in the domestic market," said the group.
It added that the provision for retrenchment benefits further affected the cement segment's performance.
Net profit in the ready-mixed concrete segment rose to RM2.6mil in the quarter owing to higher sales volume from new batching plants. However, for the nine months period, operating profit was only marginally higher at RM5.3mil from RM5.2mil previously due to the lower price margins.
"The segment's margin was also affected by higher cartage costs despite savings in raw material costs," said the group.
In terms of associate company contribution, Tasek reported a lower profit contribution of RM874mil compared to RM1.9mil in the previous corresponding quarter.
Interest income also fell RM600,000 to RM1.3mil on a year-on-year basis as less funds were placed on term deposits.
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