Posted on August 27, 2011, Saturday
An announcement to Bursa Malaysia yesterday stated that CMS attributed the increase to the improved financial performance from all the various divisions as well as a net gain of RM11.43 million on acquisitions of two subsidiaries.
“Earnings continued to be mainly driven by the manufacturing division followed by the ‘construction and road maintenance’ and the ‘construction material divisions’.
“The manufacturing divisions, being the key driver and largest contributor to the group’s profitability, continued to achieve higher profit due to higher sales volume,” it added.
The ‘construction and road maintenance’ division registered a jump in profit primarily because of the re-acquisition of the profit-making entities, namely CMS Roads Sdn Bhd and CMS Pavement Tech Sdn Bhd which contributed positively in the period under review.
CMS said the property development division turned around marginally in the period ended June 30, 2011 due to large development project.
“Losses in the other division declined as a result of the discontinued operations of the loss making IT companies at the end of 2010.”
On top of that, CMS’ associate in the steel fabrication and manufacturing of steel pipes industry, namely KKB Engineering Bhd continued its sterling performance in 6MFY11. Its other associate in the investment banking industry also reported a profit for the current period compared with a loss in previous corresponding period.
“Whilst the operating environment faced by the group will remain challenging, the board expects that the group’s financial performance will continue to remain favourable and prospects for the year to remain satisfactory,” it highlighted.
No interim ordinary dividend has been declared for the financial period ended June 30, 2011.