Kuala Lumpur - Chemical Company of Malaysia Berhad (CCM) registered a profit of RM18.5 million in PBT for its third quarter ended 30 September 2009 compared to a loss of RM439,000 in the second quarter.

This reflects CCM ’s progress towards recovery in the tougher business environment despite the 4.6 per cent decline in its third quarter revenue to RM403.6 million from RM422.9 million in the second quarter.

Meanwhile, CCM ’s third quarter revenue of RM403.6 million fell 37.2 per cent from RM642.2 million in comparison with the corresponding quarter last year while the Group ’s third quarter PBT of RM18.5 million was down 63.5 per cent from RM50.7 million in 2008.

For the nine months ended 30 September 2009, the Group ’s revenue dropped 28.5 per cent to RM1.2 billion from RM1.6 billion compared to the same period last year. The Group ’s PBT was RM25.8 million down 78.8 per cent from RM122.0 million in the corresponding period in 2008.

The Pharmaceuticals Division was the Group ’s strongest performer for the nine months ended September 30, 2009, registering a six per cent increase in revenue of RM 187.6 million from RM 177.0 million compared to the corresponding period last year. In spite of the growth in revenue, its PBT was 26.9 per cent lower at RM26.4 million compared to RM36.1 million achieved in the same period in 2008. This was attributed to the full impact of depreciation and interest charges of the new Bangi plant that came on stream in the second quarter of 2008. Narrower margins were also recorded on sales to the Government sector.

Meanwhile, CCM ’s Fertilizers Division revenue fell 37.3 per cent to RM665.0 million from RM1.1 billion in the corresponding period last year. PBT declined 81.7 per cent to RM15.0 million from RM81.8 million in the same period in 2008. The results were due to overall lower prices, softer customer demand and write down of stocks.

The Group ’s Chemicals Division experienced a 27.8 per cent decline in revenue to RM317.3 million from RM439.6 million in 2008 while experiencing a RM2.1 million loss in PBT compared to a profit of RM17.7 million in the same period last year. The division ’s revenue performance reflected lower sales volumes in its trading activities and poorer prices for both the division ’s manufactured and traded products. Additionally, interdivisional sales of ammonia from the Chemicals Division to the Fertilizers Division was discontinued following the conversion of the Group ’s Shah Alam fertilizers plant to urea-based production. Provisions for doubtful debts and the write down of stock values in the early part of the year arising from falling prices contributed to the Chemicals Division ’s loss.

Earnings per share declined 74.2 per cent to 1.60 sen in the third quarter from 6.19 sen in the same quarter last year. For the nine months ended September 30, 2009, earnings per share fell 89.5 per cent to 1.73 sen from 16.5 sen in 2008.

The Group does not recommend payment of an 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.

ooOoo

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 Tel no: 03-21617144 or email: ifazila@epapr.com.my