Hong Leong Asia back in the black with $45m profit for FY13

Singapore

HONG Leong Asia swung into the black with a net profit attributable to equity-holders of $45.28 million for the financial year ended Dec 31, from a net loss of $34.91 million for FY12.

The net loss in FY12 was largely due to impairment of assets at its consumer products unit Xinfei. Had the assets impairment been excluded, the group would have reported a net profit of $16.8 million for FY12.

Including non-controlling interests, attributable net profit was $180.3 million, up from $75 million.

Revenue for FY13 rose 10.7 per cent to $4.55 billion, boosted by higher revenue from its diesel engines unit Yuchai, while earnings per share worked out to 12.11 cents, versus a loss per share of 9.34 cents in FY2012.

Gross profit edged up 5.4 per cent to $968.46 million while operating profit surged 94.5 per cent to $231.75 million. Share of profit of associates and jointly-controlled entities climbed 13 per cent to $8.64 million.

Hong Leong Asia proposed a final dividend of three cents per share.

"Barring any unforeseen circumstances including any change in policies of the Chinese government and any adverse change in the business climate, the group expects to report a profit in the first quarter and in FY2014," the group said, adding, however, that it remains exposed to currency fluctuation risks as the lion's share of its businesses are overseas. Cash and cash equivalents stood at $1.034 billion.

The counter closed $1.34 yesterday, up three cents.