GMG Global reported 2Q net profit of $9.5m vs $6.3m in 1Q10 & recersing $3.8m loss in 2Q09. Revenue doubled to $80.7m but was down from $82.8m in 1Q. In 2Q, rubber sold amounted to 19,069 tons (+4% yoy but -10% qoq) & prices averaged $4,233/ton (+102% yoy, +8.5% qoq). Group highlighted it is on track to increasing tonnage output by double digits and remain positive on the fundamentals of the business and longer-term prospects for natural rubber.
Rubber prices have been firming up on concerns of low stockpiles and demand from US and Europe remains firm although the balance of forward long term contracts entered by its tyre maker customers may pose some challenges for the group in the 2H. GMG is the only pure natural rubber co listed in Spore and has supplied processed rubber and latex to big tyre makers such as Goodyear and Bridgestone.
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