Kuala Lumpur - Higher sales generated by all its three business divisions saw Chemical Company of Malaysia Berhad (CCM) record a 7.5 per cent increase in its first quarter revenue for the financial year ended March 31, 2010 to RM368.7 million from RM343.1 million in the corresponding period last year. Profit before tax (PBT) however fell 60.7 per cent to RM3.1 million for the quarter from RM7.8 million in the same period in 2009.

The Chemicals Division reported a 7.0 per cent rise in revenue to RM111.7 million for Q1 10 from RM104.4 million achieved in the corresponding quarter in 2009. This was due to better metals pricing coupled with the improvement in specialty chemical business. The Division''s PBT of RM5.7 million improved by more than 100% compared to a loss of RM0.1 million in the same period in 2009. This was mainly contributed by lower overhead costs, a lower provision for doubtful debts and higher share of associated company results.

Meanwhile, CCM''s Pharmaceutical Division recorded a 5.7 per cent increase in revenue to RM58.1 million in Q1 10 from RM55.0 million in the first quarter of 2009. However, PBT slid 60.5 per cent to RM3.5 million from RM8.8 million recorded in the same period last year. The unavailability of controlled drugs due to quota limitations, lower margins from sales to Government hospitals and higher finance cost as a result of the implementation of FRS139 contributed to a lower PBT in Q1 10.

Revenue for the Group''s Fertilizers Division grew 8.3 per cent to RM199.0 million in Q1 10 from RM183.7 million in the first quarter of last year. Stiff competition from other NPK compounds producers caused a deficit in PBT of RM6.5 million in Q110 compared to a profit of RM0.3 million registered in the same period in 2009.

CCM''s Q1 10 PBT of RM3.1 million was a significant improvement compared to the loss before tax of RM10.8 million experienced in the preceding quarter of Q4 09. This is an improvement by 129.8 per cent despite the drop of 8.3 per cent in revenue from RM402.2 million to RM368.7 million.

The Board of Directors does not recommend any payment of dividend for the current quarter.

CCM is listed on the main board of Bursa Malaysia and is a key player in the fertilizers, chemicals and pharmaceuticals industries.

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Issued with the compliments of Chemical Company of Malaysia Berhad
TBy Eric Pringle Associates Public Relations Sdn Bhd.
For further information, please contact Ida Fazila Ismail
at Tel no: 21617144 or email: ifazila@epapr.com.my