Singapore's Wilmar Q3 net profit drops 60.3% to $259.5m

10 November 2010 02:36  [Source: ICIS news]

SINGAPORE (ICIS)--Wilmar International’s third-quarter net profit fell 60.3% year on year to $259.5m (€168.8m) from $652.9m, mainly due to lower profit margins in its oilseeds & grains unit, the palm oil trader said on Wednesday.

The drop in the net profit also took into account the exceptional gain of $167m from the sale of new shares in Wilmar China Limited in the third quarter of last year, the company said in a filing to the Singapore Exchange.

Sales during the July-September period, however, grew 23.3% year on year to $7.76bn on the back of increased sales volume and higher prices of agricultural commodities, the Singapore-based company said.

“All other business segments performed satisfactorily despite the challenging operating environment during the third quarter of this year,” it said.

However, weaker margins and less timely purchases of raw materials resulted in a pre-tax loss of $37.1m for the oilseeds & grains segment, it added.

The company’s group-wide net profit for the nine months ending 30 September, meanwhile, declined 30% to $1.0bn, while revenue increased 26% to $21.3bn, the company said.

“Despite the weak third quarter performance, the group remains positive on its long-term prospects. The outlook for Asian economies, especially China, India and Indonesia, remains positive,” said Kuok Khoon Hong, Chairman and CEO of Wilmar.

“The group will continue to leverage on its well-established presence in these markets and invest in existing and new businesses for growth,” he added.

 ($1 = €0.72)

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By: Nurluqman Suratman

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