Kuala Lumpur - Chemical Company of Malaysia Berhad is optimistic on its business growth this year in the face of an improving outlook in the second half of the year. For the first quarter of the year, its profit before tax (PBT) fell to RM7.8 million compared to RM30.1 million achieved in the same period last year.

CCM’s Pharmaceutical Division recorded a 6.8 per cent increase in revenue to RM55.0 million for the first quarter of its financial year ending March 31, 2009 (Q109) while the Group’s overall revenue fell 14 per cent to RM343.1 million from RM399.5 million due to lower sales by both the Fertilizers and Chemicals Divisions.

The Group anticipates the Fertilizers and Chemicals Divisions to record positive numbers for the year albeit lower profitability while the Pharmaceutical Division is expected to continue to grow and meet its targets for rest of 2009.

The overall decline of businesses in Q109 was due to lower off take by customers, a drop in product prices, lower margins, higher operating costs and a decline in the value of carrying stocks resulted in an overall decline of businesses in Q109

Revenue from the Fertilizers Division’s decreased to RM183.7 million in Q109 from RM235.7 million in Q108 while its PBT also saw a drop in Q109 compared to the same period last year.

Meanwhile, the Chemicals Division reported a 15.7 per cent decline in revenue to RM104.4 million in Q109 from RM123.9 million in the same period last year. The effect of the lower revenue resulted in the Division’s overall loss in PBT in Q109.

In spite of a 6.8 per cent increase in revenue of RM55.0 million from RM51.5 million in the preceding quarter last year, the Pharmaceuticals Division’s PBT slipped 26.8 per cent to RM8.8 million in Q109 from RM12.0 million in Q108.

Compared to the fourth quarter of 2008 (Q408), CCM’s revenue in Q109 was lower at RM530.8 million while PBT improved from RM1.7 million which reflected the non-recurrence of stock impairment charges recorded in Q408.

The Board of Directors does not recommend any payment of interim dividend for the current quarter.

CCM is listed on the main board of Bursa Malaysia and is a key player in the fertilizers, chemicals and pharmaceuticals industries.

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Issued with the compliments of Chemical Company of Malaysia Berhad
Through Eric Pringle Associates Public Relations Sdn Bhd.
For further information, please contact Ida Fazila Ismail
at 03-2161 7144/49/54 or e-mail at ifazila@epapr.com.my