Supermax chalks up RM31m Q1 pre-tax profit

Supermax Corporation Bhd, the world’s second largest rubber gloves maker, chalked up a pre-tax profit of RM30.705

million for the first quarter ended March 31, 2012, from RM25.614 million, recorded in the corresponding quarter of last year.

Revenue rose three per cent to RM248.522 million, during the period under review, from RM241.370 million recorded in the corresponding quarter last year, on the back of stronger demand for rubber gloves.

“The stronger demand was attributed to customers taking advantage of average selling prices that were about 20 per cent lower compared with last year.

“Global demand for rubber gloves remain strong,” said Datuk Seri Stanley Thai, Supermax Executive Chairman and Group Managing Director.

The improvement in profitability was largely due to lower raw material costs (natural rubber latex prices fell by 27 per cent during this period) as well as greater operating efficiency at all of its factories, he said in a statement.

The Group achieved earnings per share of 4.12 sen for the reporting quarter.

Thai said with the very challenging year of 2011 behind Supermax, the group looked forward to a better year ahead.

He said with more and more rubber supply coming on stream, Supermax expected prices to continue to moderate to between RM6.00 and RM6.50 per kg for this year.

Nitrile prices have also eased by about 11 per cent to the US$1,600 per metric tonne compared with nearly US$1,800 per tonne at the end of last year and this should contribute to greater profitability, Thai added.

The group’s manufacturing operations in Malaysia is expected to expand its surgical and nitrile glove capacity to meet global customer demands.

Its distribution unit in Chicago, United States, will have a new office and warehouse on a newly purchased 5.62 hectare land earmarked to be Supermax’s national distribution headquarters for its American operations.

The facility would be operational by the first half of next year, it added. — Bernama

Source: http://www.btimes.com.my/articles/20120528215234/Article