KUALA LUMPUR: IJM Corp Bhd managed to eke out a small profit in the three months ended June 30 as construction revenue plunged due to the movement control order (MCO) during the quarter.
The group expects construction activities to pick up pace in the coming quarters as the restrictions had eased significantly since June.
“The performance of the group’s construction division is expected to improve in the coming quarters by focusing on the timely execution and completion of its outstanding order book of RM5.5bil, ” IJM said said in a filing with Bursa Malaysia yesterday.
“Despite the subdued property market and reduced infrastructure spending by the government, the division had already secured RM1.7bil new projects this year, ” it added.For the first quarter ended June 30, IJM posted a net profit of RM1.27mil compared with RM59.4mil made a year ago.
Revenue fell to RM880mil from RM1.54bil previously. IJM Corp said the outlook for its construction, property development, industry supply and commodity businesses to remain challenging this year.
“The Group anticipates disruptive implications on the overall market environment, together with the uncertainty of commodity prices and volatility of foreign exchange rates, ” it said.
The group’s plantation division was a bright spot in the first quarter.
In a separate filing yesterday, IJM Plantations Bhd said first quarter ended June 30 net profit swelled to RM82.1mil from a net loss of RM4.8mil a year ago.
IJM’s shares fell one sen to close at RM1.23 yesterday, while IJM Plantations’ shares gained six sen to close at RM1.75.
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