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UPDATE 1-Wilmar Q3 profit falls 6 pct on tropical oils, sugar segments
November 13, 2017 / 10:34 AM / a month ago

UPDATE 1-Wilmar Q3 profit falls 6 pct on tropical oils, sugar segments

* Q3 net profit $370 mln vs $392.2 mln a year ago

* Tropical oils pre-tax profit cut in half (Adds details on segment performance, CEO comment from statement, CFO comments from results briefing)

SINGAPORE, Nov 13 (Reuters) - Singapore’s Wilmar International Ltd posted a 6 percent fall in third-quarter net profit as stronger performance in its oilseeds and grains division was offset by lower results in the tropical oils and sugar businesses.

The company, whose biggest shareholders include U.S. agricultural trader Archer Daniels Midland Co, reported a net profit of $370 million for the three months ended Sept. 30, compared with a profit of $392.2 million for the same period a year ago.

It posted a quarterly core net profit, which excludes non-operating items, of $323.7 million, down 16 percent from the year-ago period.

The company’s tropical oils segment reported a 51 percent fall in pretax profit to $83.1 million from a year ago, mainly due to lower processing margins.

It expects processing margins to improve in the fourth quarter on a sequential basis, its chief financial officer, KK Ho, told reporters on a conference call.

Profit before tax in its sugar business fell 13 percent.

The oilseeds and grains division’s pretax profit rose slightly to $253.7 million in the third quarter, driven by higher crush volume and good crush margins.

“We expect the good performance in the oilseeds and grains segment to continue into the fourth quarter, with crush margins and volume anticipated to remain positive,” said Kuok Khoon Hong, chairman and chief executive.

“Performance of the other major business segments is expected to be satisfactory,” he said.

In May, Wilmar said it was evaluating a separate listing of its operations in China, its biggest market by revenue. The company is hoping to list the business in the second half of 2019, CFO Ho said. (Reporting by Aradhana Aravindan; Editing by Sherry Jacob-Phillips and Tom Hogue)

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