Hong Leong Asia's 2014 profit falls 40.9%

HONG Leong Asia (HLA), the trade and industrial arm of the Hong Leong Group, reported a 40.9 per cent slump in net profit from S$45.6 million a year ago to S$26.9 million for its full year ended Dec 31, 2014.

The lower net profit was mainly due to higher losses incurred by the group's consumer products unit Xinfei, offset by higher profits from the diesel engines unit, Yuchai, and its building materials unit (BMU).

Revenue for the year rose just one per cent from S$4.52 billion a year ago to S$4.56 billion, mainly due to higher revenues from Yuchai and BMU, offset by lower revenues from its other business units.

Earnings per share fell from 12.19 cents to 7.20 cents.

HLA has proposed a final dividend of two cents per share, which will be paid on May 26. This is down from three cents a year ago.

HLA shares closed at S$1.435 on Friday, down 2.5 cents, before the results were announced.