Hong Leong Industries 3Q earnings slip to RM57.53mil

KUALA LUMPUR: Hong Leong Industries Bhd posted a 36.36% year-on-year drop in its third quarter earnings ended March 31, 2020, to RM57.53mil as the movement control order negatively impacted sales across its business segments.

The group recorded 10.33% drop in revenue to RM621.89mil versus the previous corresponding quarter while pre-tax profit dove 28% to RM98.91mil due to the movement restrictions as well as lower contribution from an associated company.

Over the three quarters to March 31, net profit was 19.5% lower at RM198.98mil on 3.71% higher revenue of RM2.15bil.

Moving forward, the group said that despite receiving approval to partially restart operations, the speed at which production can be stepped up will depend on market dynamics.

"In view of the uncertainty of the market condition including adapting to the requirement of social distancing at the workplacem the group may need to streamline and rationalise some of the operations accordingly.

"The group will also take necessary measures to conserve cash and continue to explore ways to reduce cost to mitigate the adverse impact of this pandemic on the group's performance," it said.
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