KUALA LUMPUR: Process equipment maker KNM Group Bhd posted its first quarterly net profit in two years, boosted by strong contributions from its businesses in Europe, on the back of improvement in the petrochemical industries.
The company made a net profit of RM18.4mil, or 0.79 sen a share in the first quarter ended March 31, as revenue increased 7.6% to RM363.4mil.
"The higher revenue in the current quarter was mainly contributed by improved performance of Europe segment with more new orders secured in the second half of year 2018," it said in a filing with Bursa Malaysia today.
The group's businesses in Europe generated about RM280mil in revenue on the back of the improvement in the petrochemical industries.
Earnings before interest, tax, depreciation and amortisation from this segment was approximately RM50mil in quarter under review.
The improved profit, KNM said, was attributed to higher gross profit margins and lower operating and administration expenses., as well as unrealised gain on foreign exchange.
KNM said the outlook for the rest of the year is challenging due to the intensified trade war between China and the US, and its consequent effects on the global economy.
"The group’s strategy to diversify its sources of income from project-based contracts to recurring-income businesses in renewable energy industry is still on going," it said.