Bina Goodyear confident of bagging new jobs ahead

CONSTRUCTION company Bina Goodyear Bhd expects to win two contracts, worth as much as RM800 million in total, within the next six months.

The company, which reported RM15 million net loss in the nine months to March 31 2009, is optimistic of returning to profitability next year, helped by lower material prices.

"We believe prices of most things have stabilised. It may go up by 5-10 per cent. But once it stabilises, it's easier for us to move on," senior general manager Lawrence Lau told reporters after the company's extraordinary general meeting (EGM) in Subang, Selangor, yesterday.

Bina Goodyear currently has orders of about RM750 million, which will keep it busy for the next six to nine months.
"Most of the jobs will be completing soon. In our business, each job usually takes about 24 months," Lau said.

During the EGM, shareholders approved the company's plans to sell a piece of land in Bandar Sri Damansara, Selangor, for RM27 million.

The sale is to fund working capital and cut debt. The company has some RM100 million in borrowings.

However, it said it was not too concerned over its borrowings.

"Most of our borrowings, more than 50 per cent, are borrowings for construction jobs. This means we will be able to settle the loans as soon as the project is completed," said Lau.

The company has no plans as yet to venture outside the country.

By Business Times (by Goh Thean Eu)