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Jardine C&C Q3 earnings down 3%

JARDINE Cycle & Carriage (Jardine C&C) on Wednesday posted a 3 per cent dip in net profit to US$200.9 million for the third quarter ended Sept 30.

The drop in earnings came after recognition of fair-value losses amounting to US$60.3 million, on the adoption of the new IFRS 9 accounting standards. The changes in fair value of the group's investments in equity instruments would previously have been classified under other comprehensive income instead of in the profit and loss statement.

Otherwise, underlying profit rose to US$261.2 million from US$214.8 million on the back of increased revenue driven by better performance from the Astra unit.

Revenue was up 10 per cent at US$4.8 billion. For the nine months ended Sept 30, revenue rose 10 per cent to US$14 billion. Underlying profit stood at US$675.1 million, up from US$590.1 million the year before.

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Jardine C&C said that Astra - the group's main revenue contributor - channelled US$582 million to underlying profit, an increase of 17 per cent from FY17.

Astra reported a net profit equivalent to US$1.2 billion, under Indonesian accounting standards, due to increased contributions from its heavy equipment, mining, construction and energy, financial services and automotive segments, which more than offset a lower contribution from agribusiness.

The Direct Motor Interests unit contributed an underlying profit of US$107 million, 20 per cent higher than the previous year. Other strategic interests together contributed a profit of US$56 million, compared to US$19 million a year go, benefiting from Vinamilk dividends declared in the period and improved results from Siam City Cement.

Earnings per share for the quarter was 51 US cents, down from 52 cents a year ago.

The counter closed at S$33.35 before the announcement on Wednesday, up S$1.58.