KUALA LUMPUR May 31 Malaysian conglomerate Sime
Darby Bhd, the world's largest palm oil planter by
land size, said on Wednesday its third quarter net profit rose
5.4 percent on a year earlier boosted by plantation and auto
The company with businesses ranging from plantations to
properties and motors recorded a net profit of 699 million
ringgit ($163.6 million) for the quarter ended March, up from
663 million ringgit in the corresponding quarter a year ago.
Revenue came in at 12.5 billion ringgit, compared with 10.2
billion ringgit last year.
President and Group Chief Executive, Mohd Bakke Salleh said
the group's year-to-date results have largely been supported by
higher crude palm oil (CPO) prices.
CPO prices averaged 2,861 ringgit per metric tonne in the
first nine months, up from 2,113 ringgit in the same period last
"Despite tightening regulations and rising import costs, we
are encouraged by the motors division's performance, driven by
higher demand in key markets," he added in a statement filed to
the local stock exchange during the midday break.
Sime Darby's motors division, its auto sales and
distribution arm, registered a 28.5 percent increase in profit
due to higher contributions from Malaysia, China and New
Zealand, and a gain on disposal of a property in Hong Kong, the
The industrial division, which supplies heavy equipment, saw
support from stabilising coal prices and more construction
activity in China and Malaysia, although division's contribution
fell 10.9 percent, Sime Darby said.
"Business sentiment in Australasia has improved slightly as
coal prices stabilised. This has resulted in better performance
in the product support business coupled with higher equipment
deliveries in Papua New Guinea," the group said.
"In China and Malaysia, equipment deliveries and product
support sales has also improved driven by the construction
Bakke added that the company's plans to list its plantation
and property units are on track.
Sime Darby shares were down 0.21 percent at the midday
break, outperforming a 0.02 percent decline in the benchmark
For the full statement: bit.ly/2rThCDD
($1 = 4.2740 ringgit)
(Reporting by Liz Lee; Editing by Richard Pullin)