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Star Publications (M) Bhd (6084) posted a lower net profit of RM13.3mil, or 1.8 sen per share, for the fourth quarter ended Dec 31, which was mainly due to goodwill impairment.

The group’s revenue during the quarter declined marginally to RM211.6mil from RM212.6mil in the corresponding period last year while pre-tax profit was lower at RM23.8mil from RM70.6mil before.

“The group’s profit before tax for the current quarter was lower at RM23.8mil compared with 2007 corresponding results of RM70.68mil due to higher operating expenses and goodwill impairment in the current quarter,” the company said in a statement to Bursa Malaysia yesterday.

For the financial year ended Dec 31 (FY08), Star posted revenue of RM831mil, up 3% from RM805.8mil in FY07.
Datuk Leong Tang Chong

However, its net profit was 17.8% lower at RM138.9mil, or 18.81 sen per share, against RM169.1mil in FY07.

Star announced a second interim dividend of 7.5 sen per share less tax and a special tax exempt dividend of 3 sen per share for FY08. The ex-date of the dividend is March 27 while the entitlement date is March 31.

The results of the financial year and quarter under review were partly affected by the goodwill impairment made in the current quarter, Star said in its results statement.

According to the Malaysian Institute of Economic Research, monthly indicators have been losing momentum and industrial output have contracted. It also reported that consumer and business confidence have dropped sharply.

“These are all evidence of a softer economic condition affecting the performance of the company and the group,” Star said.

Nielsen Media Research expects a slowing down in advertising expenditure in 2009 due to the weak economic climate and the absence of major events.

“Despite the challenging circumstances, the board of directors expects the performance for the year ending Dec 31, 2009 to be reasonably satisfactory,” Star said.

In a separate filing with Bursa Malaysia, Star said non-executive director Datuk Leong Tang Chong was redesignated chairman yesterday.

Leong has his own legal practice Messrs TC Leong & Co. His appointment follows the resignation of Tan Sri Lau Yin Pin as chairman on the same day. – The Star

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UMW Holdings Bhd (4588) posted a net profit of RM116.1mil for the fourth quarter ended Dec 31, lower than the RM143mil recorded a year earlier due to lower vehicle and equipment sales.

But overall revenue for the quarter was higher at RM2.92bil against RM2.69bil a year earlier, the company told Bursa Malaysia.

Earnings per share were 10.73 sen, down 2.87 sen. The group proposed a dividend of 12 sen per share, down 2 sen against the 14 sen dividend paid in the previous corresponding period.

For the full year, UMW’s net profit was RM562.3mil against RM469.1mil in 2007. Revenue was RM12.8bil against RM9.98bil.

The diversified group has forecast lower sales for its Perodua and Toyota vehicles, in line with the expecation of lower vehicle sales this year. “However we expect to retain our market share of 30% and 18% for Perodua and Toyota, respectively,” it said.

UMW also sees a slowdown in its industrial and heavy equipment segment. “We expect sales and margins of our industrial and heavy equipment to be affected by the economic slowdown and the unfavourable foreign exchange rates,” it said.

The group said its oil and gas business will help sustain earnings this year as it has begun to contribute to group profit.

“The challenging business environment resulting from the global crisis and the volatility of foreign exchange rates will impact the profitability of the companies in the group. Nevertheless, the board expects the group’s profit for 2009 to be at acceptable levels, albeit lower than the record 2008 performance,” it said. – The Star

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Resorts World Bhd (4715) posted a net loss of RM387.8mil for the fourth quarter ended Dec 31 from a net profit of RM344mil a year ago due to an impairment loss. Without the impairment loss, the company said its fourth quarter would have been profitable.

The group’s revenue for the quarter increased by 16.4% to RM1.32bil from RM1.14bil previously.

“The loss is due to the impairment of the group’s investment in Star Cruises Ltd (SCL) of RM781.5mil.

“This impairment loss, in which the cumulative fair value loss of the group’s investment in SCL previously recognised in reserves, has now been accounted for in the group’s income statement.

“Excluding this impairment loss, the group’s net profit would have increased by 14%, reflecting a better underlying performance of its leisure and hospitality business,” Resorts said in a statement yesterday.

For the financial year ended Dec 31, Resort posted a net profit of RM634.4mil, down 59.2% from RM1.55bil in 2007. Its revenue rose 12% to RM4.88bil from RM4.35bil in 2007. Earnings per share were lower at 11.06 sen compared with 27.42 sen.

“The increase (in revenue) is mainly due to the better underlying performance of the leisure and hospitality segment, arising from higher business volume and better luck factor from the premium player business,” Resorts said.

The group also proposed a final dividend of 4 sen per share. Together with an interim dividend of 3 sen, the total gross dividend for 2008 would amount to 7 sen, representing an 8% increase from 2007.

“Prospects in 2009 will be challenging as the worsening global economic situation will impact the leisure and hospitality industry,” Resorts said.

The group expects consumer sentiment to be affected by the slowdown in the local economy which may affect visitations to Genting Highlands Resort.

“The group will continue to closely monitor its business and take appropriate measures to address any slowdown in business activities,” it added. – The Star

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