Articles On Boustead Heavy (BHIC) Earnings

BHIC or Boustead Heavy Industries Corp announced its earnings last night.





As you can see from the above table from Dow Jones, the earnings wasn't nice at all.

Business Times carried the following article. Boustead Heavy Q4 profit down by almost two-thirds

• BOUSTEAD Heavy Industries Corp (BHIC) Bhd's (8133) fourth quarter net profit fell by almost two-thirds due to lower margin and reduced share profit from associates, compared to a year ago.
  
  This was despite revenue almost quadrupling to RM169.3 million for the period ended December 31 2008, from RM45.7 million for the same period a year ago.
  
  The group said while the global economic environment is expected to continue to impact its future performance, it will continue with efforts to improve its capacity and competency.
  
  "In line with efforts to widen the market base, the group will continue to penetrate new markets within the Asian and African regions," BHIC told Bursa Malaysia Bhd yesterday.
  
  BHIC registered a net profit of RM15 million for the period ended December 31 2008, compared to RM48.3 million net profit for the same period in 2007.
  
  The group has proposed a final dividend of 5.5 per cent per share, despite declining profits. Some RM13.7 million will be distributed in the payout which is yet to be approved shareholders approval.
  
  Net profit for the full year ended December 31 2008 was also down by two thirds to RM115 million, from RM485 million in 2007.
  
  This was also despite recording much higher revenue of RM496 million in 2008, from RM117 million in 2007.

The Star Business on the other hand carried the following headlines. BHIC posts RM14.96mil Q4 net profit

• PETALING JAYA: Boustead Heavy Industries Corp Bhd (BHIC), the naval contractor and oil and gas player, posted a net profit of RM14.96mil, or six sen per share, in the final quarter ended Dec 31.
  
  This was on a turnover of RM169mil.
  
  For the full financial year (FY08), net profit amounted to RM115mil, or 46.33 sen per share, on revenue of RM496mil.
  
  The group’s net profit was lower than RM485mil achieved in FY07, but this was due to lower writebacks received from revived projects in an associate company.
  
  Group deputy executive chairman vice-admiral (rtd) Datuk Seri Ahmad Ramli Mohd Nor said BHIC’s order book stood at RM720mil.
  
  “We anticipate our order book to grow, with more projects currently in negotiation stage with local and foreign parties,’’ he said in a statement yesterday.
  
  The group’s quarter-on-quarter performance showed an increase in revenue from RM114mil in the third quarter to RM169mil in the last three months.
  
  However, BHIC’s last-quarter performance was “affected by a lower margin and reduced share of profit from our associate,’’ Ramli said.
  
  BHIC said the global economic environment would impact the group’s future performance.

How?

See the spin?