KUALA LUMPUR: Cycle & Carriage Bintang Bhd’s (CCB) net profit for the second quarter ended June 30 surged to RM30mil from RM3.62mil a year ago, due to exceptional items.
Announcing the earnings Wednesday, the company declared a special dividend of RM1.35 per share and also an interim dividend of five sen per share, following the completion of its restructuring exercise.
CCB said revenue fell to RM154.04mil from RM177.26mil due to lower sales. Earnings per share was 29.75 sen versus 3.59 sen
In the first half, net profit was RM34.01mil compared with RM5.15mil the previous corresponding period. Revenue declined to RM298.82mil from RM334.61mil.
Its chairman Ben Keswick said the higher net profit in the first half was due to a one-off premium of RM18.7mil received from its investment in Mercedes-Benz Malaysia (MBM).
He also said there was a net gain of RM12.2mil arising from the disposal of surplus properties, which more than offset losses incurred on discontinued operations and the cost of voluntary separation scheme.
Keswick said in May, the CCB had entered into an amended joint venture agreement with Daimler AG regarding its investment in MBM.
Under the terms of the amended agreement, CCB would continue to receive an annual dividend of RM11.2mil from its investment in MBM, instead of the lower amount announced previously.
He said CCB was paid a premium of RM18.7mil, which would have only been payable under the terms of the original agreement when the joint venture came to an end.
Under the restructuring exercise, it had in the first half of 2008 disposed of its Mazda franchise and completed a voluntary separation scheme designed to rationalise the group’s headcount.
Keswick said the company has now completed its restructuring, enabling it to focus on its Mercedes-Benz franchise going forward.
“Sales of Mercedes-Benz passenger cars in the first half of 2008 were 8% lower than the corresponding period in 2007 at approximately 700 units, mainly due to supply constraints of the new C-Class,” he said.
He added CCB was in a position to return surplus funds not earmarked for operational needs or for investment in the foreseeable future.
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