Jardine C&C's earnings fall 11% to $575 million on weaker contributions from Astra

DIVERSIFIED Jardine Cycle & Carriage posted an 11 per cent drop in net earnings to US$452.6 million (S$575 million) for the interim period ended June 30.

This fall came on the back of lower contributions from Astra International and the group's motor businesses, as well as a weaker rupiah.

The drop would have been 20 per cent if the previous corresponding period's figures had not been restated because of a change in accounting policy.

Group revenue was down 7 per cent to US$10.4 billion, as competition in the Indonesian automotive market heated up.

Astra's motor car market share shrank to 53 per cent, from 56 per cent. But its share of the motorcycle market rose from 57 per cent to 60 per cent.

Jardine C&C's earnings per share fell from 143.58 US cents to 127.24 US cents. Net asset value per share was marginally higher at US$13.09, up from US$13.03 previously.

Directors expect the group to face more competition in the current half, and outlook for its motor businesses to remain challenging.

Nevertheless, they are recommending an interim dividend of 18 US cents per share, unchanged from the restated payout in the previous corresponding period.