SINGAPORE (April 28): Jardine Cycle & Carriage posted earnings of US$210 million ($297 million) in the first quarter ended March 31, 50% higher than the US$141 million recorded a year ago.
This was on the back of Astra showing improvements in almost all of its businesses due to the general growth in the Indonesian economy and a recovery in commodity prices.
Revenue grew 16% to US$4.2 billion in 1Q17, from US$3.6 billion a year ago, largely due to increases from most of Astra’s businesses.
Astra contributed US$185 million to the Group’s underlying profit, 67% higher than a year ago.
Net income from the group’s financial services business increased 75% to US$84 million on the back of improved contributions from most financial services businesses, including Permata Bank.
Permata Bank, Astra’s 44.6%-held joint venture, reported net income of US$34 million in 1Q, compared with a net loss of US$28 million a year ago.
Net income from the group’s heavy equipment and mining business increased by 104% to US$68 million, while net income from its agribusiness business increased by 92% to US$48 million.
Underlying profit from Jardine C&C’s Direct Motor Interests fell 36% y-o-y to US$23 million.
The reduction was due largely to a lower contribution from Truong Hai Auto Corporation in Vietnam as a result of increased competition.
Cash and cash equivalents stood at US$2.6 billion as at March 31, 2017.
“The outlook for the rest of the year is positive with Astra expected to benefit from the continued growth in the Indonesian economy, supported by higher commodity prices, although for its automotive activities there is a risk of increasing price competition,” says Jardine C&C chairman Ben Keswick.
Shares of Jardine C&C closed 88 cents lower at $47.23 on Friday.
