Falling consumer product sales have battered profits at Hong Leong Asia, the trade and industrial arm of Hong Leong Group.
Net profit for the three months to June 30 plunged 93.4 per cent from the same period last year to $638,000, while revenue rose 1 per cent to $1.2 billion.
Net profit for the first half of the year fell plunged 76.7 per cent to $5.3 million. Revenue fell 6.4 per cent to $2.3 billion.
Profit for the three months fell mainly due to increased losses at the consumer products business, Hong Leong said yesterday.
These losses were partially offset by higher earnings from the diesel engines division.
AT A GLANCE
REVENUE: $1.2 billion (+1.0%)
NET PROFIT: $638,000 (-93.4%)
INTERIM DIVIDEND PER SHARE: One cent (No change)
Consumer product sales fell 18.7 per cent from last year, hit by the weaker Chinese economy, keen competition and over-capacity in the industry. Revenue from the diesel engines unit rose $30 million compared with last year's figure.
Although the total number of engines sold declined, revenue increased mainly due to more expensive models being sold and the strengthening of the yuan during the quarter.
Earnings per share for the quarter fell from 2.57 cents last year to 0.17 cent while net asset value per share rose from 231.98 cents at Dec 31 to to 232.41 cents.
An interim dividend of one cent per ordinary share, the same as last year, was declared.
The company said it expects a weaker performance in the near term, especially from its business in China, in view of the "challenging business environment and uncertain global economy".