KUALA LUMPUR: Supermax Corp Bhd posted a lower pre-tax profit of RM34.088 million in the third quarter ended Sept 30, 2011 as against the RM41.448 million recorded in the same quarter of last year.
In a filing to Bursa Malaysia today, the world’s second largest rubber gloves maker said revenue however, increased to RM271.419 million from RM235.104 million previously.
In a separate statement, Supermax’s Executive Chairman and GroupManaging Director Datuk Seri Stanley Thai said the better performance was due to increased sales for both natural rubber and nitrile latex gloves.
“Overall profit margins rose from 11.2 to 11.4 per cent as the group benefited from lower natural rubber latex prices and a relatively stable US:RM exchange rate environment,” he added.
He said while Supermax is increasing the production output of nitrile gloves, the group has been maintaining its global manufacturing margins at between 11 and 15 per cent to be in line with global prices, especially gloves from China.
Supermax is also confident of achieving the full year profit after tax of between RM100 million and RM120 million for the current financial year.
“Demand for the industry remained resilient. We are expanding to step up production lines for additional capacity to reduce delivery lead time and improve profitability through higher efficiency and better productivity,” Thai said.
Currently, the group is at an advanced stage of its expansion plan to grow its surgical glove capacity 10-fold.
The new lines are expected to be ready by year-end and would enable Supermax to tap into the highly lucrative market.
“This new capacity is expected to contribute US$10.1 million in additional profits to the group next year,” Supermax said.
The board of directors has also declared an interim dividend of six per cent tax exempt, amounting to RM10.2 million to be paid on December 8, in respect of the financial year ending December 31, 2011. – BERNAMA
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/10/24/business/20111024143826&sec=business
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