Wilmar: -5.2% at $6.51. Worse-than-expected 60% yoy fall in 3Q10 to US$259m, lower than an avg forecast of US$467m, mainly due to weaker margins for Palm & Laurics and Consumer Products, as well as lower realised prices for CPO produced by its own plantations. This was despite revenue +23.3% yoy to US$7.8b, on increased sales volume and higher prices of agricultural commodities...
On segmental performance, Oilseeds & Grains contributed primarily to the earnings decline, which mgt attributed to ‘weaker margins and less timely purchases of raw materials', despite sales volume rising 28%. All other business segments performed satisfactorily despite a difficult quarter.
Mgt retains positive outlook, but more clarity to come only after lunchtime analyst briefing.
Expect near term support around the $6.50 levels.
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