Published May 4, 2009

Combined Q1 profits down 40%

81 firms posted Q1 results, of which 68 saw profits, but only 26 saw increases

By CHEN HUIFEN

	Email this article
	Print article
	Feedback

THE combined first-quarter profits of companies listed on the Singapore Exchange was down 39.5 per cent year-on-year to $1.15 billion, a reflection of weaker demand amid a slowing global economy.

Still going strong: Notwithstanding a tough outlook, Pacific Shipping Trust saw net profit grow 74.8per cent to $9.9 million

As of 7pm last Thursday, 81 listed firms had released their financial results for Q1 ended March. Of that, 68 reported profits, but only 26 posted an improvement to their bottomline.

Two of them swung into the black, from losses in the year-ago period. The remaining 40 reported lower profits.

It was difficult to paint a definitive picture of sectoral trends in earnings, given that the size of BT's compilation represents less than half the number of listed firms in Singapore. Nevertheless it gave a broad view of how companies are coping with the downturn and waning export demand.

Real estate and shipping trusts were among those that reported spectacular earnings growth. Notwithstanding a tough outlook, Rickmers Maritime Trust posted a 60 per cent surge in distributable income to US$19.6 million, while Pacific Shipping Trust saw net profit grow 74.8 per cent to $9.9 million.

It was difficult to paint a definitive picture of sectoral trends in earnings, given that the size of BT's compilation represents less than half the number of listed firms in S'pore.

On the Reits front, first-quarter earnings at CapitaRetail China Trust jumped 51.3 per cent to $13.3 million. Similarly, K-Reit Asia posted a 37.3 per cent gain in earnings to $15.7 million and CapitaCommercial Trust racked up 26.6 per cent growth in net profit to $45.4 million.

Companies in the healthcare industry also bucked the decline in sentiment. China-based Tianjin Zhong Xin Pharm Group recorded an 88.2 per cent jump in earnings to $20.4 million, while Sihuan Pharmaceutical's net profit gain of 14.8 per cent to $13.5 million is considered decent under such trying times. So is Raffles Medical Group's 27.7 per cent earnings growth to $7.8 million.

Property developers and commodity firms were those affected by the decline in consumer demand. Profits at CapitaLand, Keppel Land and Fragrance fell at double-digit pace, dragged down by lower sales in projects.

Meanwhile, lower crude oil and palm oil prices also pulled down the performance of Singapore Petroleum Company (SPC) and Indofood Agri Resources respectively. SPC turned in a net profit of $55.6 million, or 43.5 per cent lower than the year-ago period, while plantation group Indofood Agri Resources saw earnings dive 54.9 per cent to $31.2 million.

Of the 13 companies that reported losses, most are in the electronics industry. Chartered Semiconductor posted the biggest loss at $154 million, followed by Stats Chippac's $77.6 million, and Kingboard's $15.7 million.

Ten of the 13 loss-making companies had sunk into the red from black. The remaining three had wider losses compared to the same quarter in the previous year.

Keppel Corp took the top earner spot, with a profit of $285.3 million. Earnings for the January-March period climbed 9 per cent, helped by a 34.7 per cent rise in turnover to $2.98 billion.

It was followed by Jardine Cycle & Carriage, which posted a 31.2 per cent drop in earnings to $134.1 million.