Cahya Mata Q1 total income down 75% to RM11.77m

RAM Ratings said CMSB

KUALA LUMPUR: Cahya Mata Sarawak Bhd's (CMSB) total comprehensive income attributable to the owners fell 75.2% to RM11.77mil from RM47.46mil a year ago due to losses from associates.

The cement company said on Monday profit attributable to the owners of the company fell to just RM1.05mil in the first quarter ended March 31, 2016 from RM57.42mil a year ago 

Its associates posted losses of RM16.16mil in the quarter compared with gains of RM13.73mil a year ago.

Its revenue fell 29.3% RM346.91mil from RM490.99mil a year ago. Earnings per share were just 0.1 sen compared with 5.52 sen.

“The cement division recorded a profit before tax (PBT) of RM9.62mil for their contribution towards the group’s results for 1Q16. This was 67% lower than 1Q15’s exceptional PBT of RM29.37mil and also 53% lower than 1Q14’s RM20.44mil. 

“This is attributable to lower sales volumes, costs linked to the new cement mill’s commissioning, plant shut downs and higher costs both in imported raw materials and cement due to the still weaker Ringgit,” it said. 

CMSB said the construction materials & trading division reported a PBT of RM16.98mil for 1Q16, a 44% decline in comparison to 1Q15’s exceptional PBT of RM30.32mil but still 37% higher than 1Q14’s RM12.38mil. 

“The construction & road maintenance division recorded a PBT of RM19.38mil, a decline in comparison to 1Q15’s exceptional profit of RM26.22mil by 26% but still 8% higher than 1Q14’s RM17.87mil,” it said. 

CMSB said all these divisions’ 1Q16 results were impacted by exceptionally inclement weather during 1Q16 which hampered the progress of construction works and of quarry production volumes as well as by generally reduced demand for construction materials in the Sarawak market, reflecting the lack of both big new projects and of stringent bank financing, to drive demand in the State. 

“The group also recorded losses of RM16.16mil in 1Q16 from the share of results of its associates, largely due to the losses reported by the group’s 25% associate, OM Materials (Sarawak), which operates a ferro silicon alloys smelter in Samalaju Industrial Park where commodity prices have been at record lows,” CMSB.