Jardine C&C reports 1H19 net profit more than doubled

Rubber car tyre; taken September 2018Car tyre; taken September 2018

Jardine Cycle & Carriage reported Friday its first half net profit jumped 147 percent on-year to US$427 million on net non-trading gains of US$20 million, mainly on unrealized fair value gains for non-current investments.

Underlying net profit, which distinguishes between ongoing business performance and non-trading items, slipped 1 percent on-year to US$407 million, Jardine C&C said.

That was due to a lower contribution from Astra amid a weaker automotive market, hurt by relatively weak domestic consumption and lower commodity prices, the company said.

Revenue for the six months ended 30 June was slightly lower at US$9.16 billion, compared with US$9.19 billion in the year-ago period, the company said in a filing to SGX.

“The outlook for the rest of the year remains cautious, with Astra expected to continue to face a soft automotive market and commodity
prices. The group’s Direct Motor Interests will also continue to be affected by challenging market conditions,” Ben Keswick, company chairman, said in the statement.

Astra contributed US$326 million to Jardine C&C’s underlying profit for the first half, down 8 percent on-year, while Direct Motor Interests’ contribution fell 22 percent on-year to US$55 million, the filing said.

Net income from Astra’s automotive division fell 18 percent on-year to US$244 million, mainly on lower car sales volumes and increased manufacturing costs, the filing said.

Jardine C&C declared an interim dividend of 18 U.S. cents a share, unchanged on-year.

Read more about Jardine Cycle & Carriage’s first half results.

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