Indonesia's slowing economy is weighing on earnings at conglomerate Jardine Cycle & Carriage (C&C), which recorded a 16 per cent slide in full-year net profit to US$688 million (S$965 million).
Revenue for the year ended Dec 31 slid 16 per cent to US$15.7 billion as the group's main profit contributor, Astra International, saw reduced profit contributions from all its major business segments in the face of challenging trading conditions.
Astra's contribution of US$477 million to the group's underlying profit was 34 per cent down, as a 25 per cent decrease in its rupiah result was translated into a 33 per cent decline in US dollars.
The exchange rate was, on average, 12 per cent weaker than in 2014, the company said in its Singapore Exchange filing yesterday.
However, this was somewhat offset by a stronger showing in the company's direct motor interests, which produced a 71 per cent increase in underlying profit at US$141 million following a strong performance by Truong Hai Auto in Vietnam.
Earnings per share for the year was US$1.82, down from US$2.24 the preceding year. Net asset value per share was US$13.33 as at Dec 31, from US$12.63 the previous year.
C&C said it remains cautious about the outlook for this year, given the uncertain external macro-economic environment in the region, "although Astra's strong cash generation and sound balance sheet are enabling it to invest for the future and to benefit from any improvement in trading conditions".
AT A GLANCE
US$15.7 billion (-16%)
US$688 million (-16%)
51 US cents (-23.9%)
The company said it is seeking to grow its direct motor interests in the region, where it is currently operating in Singapore, Malaysia, Indonesia, Vietnam and Myanmar.
It is also investing in market-leading companies that can provide exposure to new business areas in key regional economies.
C&C is recommending a final dividend of 51 US cents per share, bringing the total dividend for the year to 69 US cents.