Results not bad. Will it Rebound tomorrow????
WTK 3Q profit up 20% on timber sales to Japan
Business & Markets 2012
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 29 November 2012 18:20
KUALA LUMPUR (Nov 29): WTK Holdings Bhd [] posted a higher net profit of RM17.24 million on higher revenue of RM199.31 million for the third quarter (3Q) to end-September 2012 due mainly to a rise in timber sales to Japan.
Its net profit of RM17.24 million was a rise of 20% year-on-year and turnover of RM199.31 million was a jump of 40% over the 3Q in 2011.
For the nine months to September 2012, net profit totalled RM35.06 million while revenue stood at RM573.05 million. In previous corresponding period, net profit was RM48.16 million and revenue was RM475.53 million.
The better performance in 3Q was due to increase in turnover in both the timber and non-timber divisions, WTK said in its filings with Bursa Malaysia.
“For the current quarter, the group’s timber division registered a turnover of RM155.6 million, representing an increase of 48.3% or RM50.7 million as compared with RM104.9 million in the 3Q2011,” it said in its notes accompanying results.
The higher turnover was on the back of improved sales of the group’s plywood to Japan.
But with spending on reCONSTRUCTION [] from Japan’s March 2011 tsunami and nuclear disasters slowing and ongoing concerns on the world major economies, WTK said it will remain cautious of the prospect of the timber industry.
“But with encouraging performance of the non-timber division, the group is optimistic that it will continue to register growth in its export market while the domestic growth is expected to be challenging in 2012,” it said.