Most of Jardine C&C's operations report lower performance in Q1 FY21

JARDINE Cycle & Carriage (Jardine C&C) on Tuesday said that it "continued to operate in challenging conditions" for its first quarter ended March 31, as a result of the ongoing Covid-19 pandemic.

Additionally, most of the group's operations, particularly those in Indonesia, had lower performance in in Q1 FY21 compared to the same period last year. Jardine C&C's first-quarter results were also impacted by translation losses on its foreign currency loans, it added in its interim management statement.

Astra - the largest independent automotive group in South-east Asia in which Jardine C&C has a 50.1 per cent interest - reported a 22 per cent decrease in earnings year-on-year (y-o-y), as the pandemic "began to materially impact the Indonesian economy and the performance of the business from March 2020".

Most of Astra's operations had weaker performances, with lower sales volumes in the automotive division and higher loan provisions, as well as reduced lending volume in the financial services division.

Meanwhile, the performance of the heavy equipment and mining division was stable, said the group, with improved gold and coal prices offsetting lower mining contracting volume.

"Astra's trading performance continued to recover during the period, however, with its automotive, financial services and heavy equipment and mining divisions showing improvement compared to previous quarters," added the group.

Cycle & Carriage Singapore saw improved margins in Direct Motor Interests, mainly from its used car segment, which offset lower sales volume. Its Malaysian counterpart, Cycle & Carriage Bintang, had also benefited from a government sales tax reduction and cost savings initiatives.

Over in Indonesia, however, Tunas Ridean reported lower contributions across its operations.

For the quarter, the group noted that its other strategic interests had performed well. For instance, the recovery of Truong Hai Auto Corporation's automotive business that began in the second half of last year continued, with higher unit sales and margins due to an improved sales mix. Siam City Cement had also seen higher sales volumes.

Nonetheless, Jardine C&C said that its financial position "remains strong, reflecting a continued focus on reducing operational and capital expenditure, and managing working capital".

It added: "(The group's) overall performance has gradually improved in recent quarters. However, the group expects that the pandemic and related containment measures will continue to affect its performance for some time."

Shares of Jardine C&C ended Tuesday S$0.11 or 0.48 per cent higher at S$22.95, prior to the announcement.