Kuala Lumpur – Chemical Company of Malaysia Berhad (CCM Berhad) achieved a 23 per cent increase in consolidated Group revenue to RM422.9 million for its second quarter ended June 30, 2009 (Q209) up from RM343.1 million in the preceding quarter this year. However, due to drop in the prices of caustic soda and muriate of potash, consolidated Group Profit Before Tax (PBT) was a loss of RM439,000 in the current quarter compared to RM7.8 million profit reported in the previous quarter. This loss also reflected a correction made for an under-accrual of finance costs in the first quarter. On an adjusted basis, the decline in PBT was 45.2 percent, i.e. from RM4.7 million adjusted PBT for the first quarter to RM2.6 million adjusted PBT for the second quarter.

Compared to the same quarter last year, the Group’s revenue fell 29 per cent and PBT 99 per cent from RM592.9 million and RM41.2 million respectively. For the six months ended June 30, 2009 Group revenue was 23 per cent lower at RM766 million from RM992.4 million recorded in 2008 while Group PBT slid 90 per cent to RM7.3 million from RM71.4 million last year.

Revenue for the Fertilizers division for the six months ended June 30, 2009 decreased by 31 per cent to RM436.2 million from RM636.6 million achieved in the same period last year. PBT fell 97 per cent to RM1.5 million from RM44.6 million in the corresponding period in 2008. The division’s performance was affected by both lower volumes and eroded margins.

The Chemicals Division registered a 22 per cent decline in revenue for the first half-year to RM211.4 million from RM269.7 million in the corresponding period in 2008 reflecting both lower volumes and prices despite contribution from the newly acquired chemicals formulation business. Due to provisions for slow-moving stocks and doubtful debts incurred in the chemicals trading business and provisions for residual client claims in the water system business, the division registered a loss before tax of RM5.5 million compared to a profit before tax of RM10.3 million achieved last year.

For the six months ended June 30, 2009, the Pharmaceutical Division recorded a 3.5 per cent increase in revenue to RM118.3 million from RM114.3 million in the corresponding period last year. However, the Division’s PBT was 16 per cent lower at RM18.9 million compared to RM22.6 million in the same period last year reflecting the full impact of depreciation, interest and utilities costs of the new Bangi plant.

The Group anticipates better performances by its Pharmaceutical and Fertilizers Divisions in the second half of the year. However, it is not likely that the Group will achieve its previously announced turnover and PBT targets for the year.

The Board of Directors does not propose any dividend for the current quarter under review.

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