UEM World swings into net profit in Q4

UEM World Bhd swung into a net profit of RM275 million for the fourth quarter ended December 2007, compared to a net loss of RM16 million for the corresponding period in the year before. Revenue grew four per cent to RM1.38 billion.

The improvement was due mainly to higher contributions from its property division, gains from the dilution in a foreign subsidiary and a foreign associate, as well as favourable results from joint ventures.

UEM World expects all its divisions to improve their operational results in 2008.

It also expects positive contribution from the construction of the second Penang bridge, works in the Iskandar Development Region and other infrastructure projects under the Ninth Malaysia Plan.

The manufacturing division is expected to benefit from increased activities in the construction industry as well, UEM World said in a statement.

For the full year, it turned to black with a net profit of RM739.3 million while revenue was up 45 per cent to RM5.75 billion.

This was due mainly to the sale of 1,000ha of land to Khazanah Nasional Bhd last June and higher contribution from engineering and construction, manufacturing and healthcare divisions.

The engineering and services segment saw net profit surge by more than 600 per cent to RM286.6 million in 2007, boosted by gains from the New Zealand listing of Opus International Consultants.

The construction division improved to a net profit of RM43.2 million compared to a net loss of RM2.8 million in 2006.

By New Straits Times