Boustead Heavy Industries Corp Bhd’s (BHIC) earnings rose 24.5% to RM18.6 million in the fourth quarter ended Dec 31, 2009 (4Q09) from RM14.97 million a year earlier on lower operating costs and taxes.However, the company said in a statement today it was concerned about the uncertainty in the global economic outlook and the impact on the vessels construction industry.

Revenue slipped to RM163.58 million from RM169.34 million while earnings per share were 7.49 sen versus 6.02 sen. It did not propose a final dividend for the just ended financial year.

BHIC also declared today a single-tier first interim dividend of 6% per share for the current financial year ending Dec 31, 2010. The dividend will be paid on April 8, 2010 to shareholders registered at the close of business on March 18, 2010.

For FY09, net profit declined to RM76.28 million, down 33.7% from RM115.12 million a year ago in part due to lower contribution from associates. Revenue rose 9.6% to RM543.9 from RM496.3 million in FY08. Net profit fell 33.7% to RM76.3 million from RM115.12 million in part due to lower contribution from associates.

“In 2009, our share of contribution from associates was lower because in 2008, there was a reversal of notional tax charge of approximately RM21.2 million,” the company said.

BHIC also announced Boustead DCNS Naval Cooperation Sdn Bhd, the joint-venture company set up to provide in-service support to the Scorpene submarines had begun operations.

“There is uncertainty in the global economic outlook and continuing pressure on construction of new vessels and oil and gas projects. Important steps have been taken on the path of transforming the group into a sustainably profitable entity, but more needs to be done. Prospects for 2010 are dependent on the continued recovery of the economy,” it said.

Source: The Edge Financial Daily

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