Published March 7, 2009

Jardine posts 64% profit fall to US$666m

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(Singapore)

JARDINE Matheson Holdings, which owns real estate, supermarkets and drugstores in Asia and runs hotels worldwide, said 2008 profit fell 64 per cent on a decline in the value of its investment properties.

The Hong Kong-based company's net income dropped to US$666 million, or US$1.89 per share, from US$1.83 billion, or US$5.16, the company said yesterday. Sales climbed to US$36.2 billion from US$31.6 billion. 'While the prospects for our businesses remain sound in the year ahead, some are facing a greater impact than others from the deteriorating market conditions,' chairman Henry Keswick said.

Jardine is contending with a dim outlook for office rents. Demand for travel has also fallen, resulting in a 38 per cent drop in 2008 profit at Mandarin Oriental International, a Jardine unit. Hongkong Land Holdings, another Jardine unit, on Thursday posted a loss of US$109 million.

Jardine's net income excluding the revaluation of real estate rose 14 per cent to a record US$822 billion, or US$2.33 a share, from US$719 million, or US$2.03 a share as it benefited from higher rents negotiated in the first nine months of the year.

The company will pay a final dividend of 51 US cents. -- Bloomberg