Wilmar, whose other businesses include sugar and edible oils, earned US$405.8 million ($497 million) for the three months ended September, up from US$321 million a year earlier and US$117 million in the previous quarter.

Wilmar’s third-quarter result beat the average net profit forecast of US$335 million, based on a Reuters poll of five analysts.

“Despite the uncertainties in the global economy, the group remains positive on its long-term prospects due to good economic growth in its main markets of China, India and Indonesia, continued increase in the production of palm oil in Indonesia, coupled with new projects developed in the past few years like oleochemicals, rice and flour milling,” chairman and CEO Kuok Khoon Hong said.



Wilmar, whose shares have fallen nearly 38% since the start of the year, is among the worst performers out of nearly 200 stocks worldwide in the large and midcap food products industry, Thomson Reuters StarMine data shows. 

Wilmar International, the world’s biggest palm-oil processor, headed for the lowest in more than three years in Singapore trading after it said second- quarter profit plunged 70%.

The stock fell as much as 9.1% to $3.08, set for the lowest close since March 16, 2009. Wilmar, down 38% this year, is the worst-performer on the benchmark Straits Times Index.

The Singapore-based company said yesterday net income was $117.1 million in the three months ended June 30, from US$393.1 million ($491.3 million) a year earlier because of losses at its oilseeds and grains business and on lower earnings from its plantations. That missed the US$316.5 million average of three analyst estimates in a Bloomberg survey.

“Results were very much below expectations,” James Koh, an analyst at Maybank Kim Eng Holdings, wrote in a report today. “Soybean crushing over-capacity in China will continue to hurt margins and the market has been too optimistic to expect a turnaround.”

The company posted a pretax loss of US$40 million at its oilseeds and grains division due to negative crushing margins and depreciation of the yuan against the U.S. dollar, Wilmar said. Profit also declined because of lower prices and yields at its plantations, it said.


Wilmar also recorded a pretax loss of US$34.6 million, compared with a profit of US$34.9 million a year earlier, at its non-core businesses on lower fertilizer and shipping profits and higher losses from investments in securities, it said yesterday. 

Wilmar shares plunge to 3-year low on poor Q2 earnings, outlook

SINGAPORE, Aug 15 (Reuters) - Shares of Wilmar International fell 10 percent to more than a three-year low after the world's largest listed palm oil firm reported quarterly earnings that missed expectations and warned of a tough outlook.

By 0106 GMT, Wilmar was at S$3.04, its lowest level since March 2009. Its shares have plunged about 38 percent so far this year, making them the worst performer on Singapore's benchmark Straits Times Index.

Wilmar said on Tuesday its second quarter net profit slumped 70 percent to $117.1 million from a year earlier. This was far below the average forecast of S$328 million, based on a poll of five analysts.

Chairman and CEO Kuok Khoon Hong said short-term prospects were difficult even though Wilmar was well positioned to benefit from growth in demand for agricultural commodities, especially in Asia and emerging markets like Africa. (Reporting by Charmian Kok)

UPDATE 1-Singapore's Wilmar flags tough outlook after profit slump

* Q2 net $117.1 million vs f'cast $328 million

* Net excluding non-operating items down 55 pct to $172.3 mln

* Net loans and borrowings rise to $12.5 billion (Adds detail, quote, background)

By Eveline Danubrata

SINGAPORE, Aug 14 (Reuters) - Singapore's Wilmar International Ltd, the world's largest listed palm oil firm, warned of challenges in the near term especially in China where losses contributed to a 70 percent slump in quarterly earnings.

Chairman and CEO Kuok Khoon Hong said short-term prospects were difficult even though Wilmar was well positioned to benefit from growth in demand for agricultural commodities, especially in Asia and emerging markets like Africa.

" In the near term, the operating environment remains challenging, particularly in China, due to excess capacity in oilseeds crushing," he said on Tuesday.

Shares in Wilmar - which cut its interim dividend to 2 Singapore cents a share from 3 cents a year before - have been hit by concerns about weak crush margins in China and the government's move to ask producers to avoid raising edible oil prices.

The stock has fallen 32 percent so far this year versus a near 17 percent gain in the Straits Times Index, making it the biggest loser in the benchmark index.

Wilmar's net profit of $117.1 million for the three months ended in June was dragged down by losses in its oilseeds and grains businesses in China, as well as its sugar segment. Plantations and palm oil mills also generated lower profits.

Earnings were far below an average forecast of $328 million, based on a poll of five analysts. Excluding non-operating items, second-quarter net profit fell 55 percent to $172.3 million.

The heavily indebted company also said its net loans and borrowings rose to $12.5 billion, contributing to an increase in net gearing to 0.93 times from 0.79 times at the end of December 2011.

For the second quarter, its finance costs rose by 40.2 percent to $164.8 million, mainly due to an increase in its effective borrowing rate. (Editing by Kevin Lim and David Holmes) 

 

Singapore's Wilmar Q2 profit down 70 pct, far below forecast

SINGAPORE, Aug 14 (Reuters) - Singapore's Wilmar International Ltd, the world's largest listed palm oil firm, reported a 70 percent fall in second-quarter net profit on Tuesday, largely due to losses in oilseeds and grains and lower profits from plantations and palm oil mills.

Wilmar had net profit of $117.1 million for the three months ended in June, down from $393.1 million a year earlier and $255.9 million in the January-March period.

The second-quarter profit was far below an average forecast of $328 million, based on a poll of five analysts.

Wilmar said in the near term the operating environment remains challenging, particularly in China, due to excess capacity in oilseeds crushing.

Wilmar shares have been hit by concerns about weak crush margins in China and the government's move to ask producers to avoid raising edible oil prices.

The stock has fallen 32 percent so far this year versus the nearly 17 percent gain in the Straits Times Index, making it the worst performer on the benchmark index. (Reporting by Eveline Danubrata) 

 

 

 

 

Wilmar International, the world’s biggest palm-oil processor, said second-quarter profit dropped 70% on losses at its oilseeds and grains segment.

Net income fell to US$117.1 million ($145.9 million) in the three months ended June 30 from $393.1 million a year earlier, the Singapore-based company said today in a statement. That missed the US$316.5 million average of three analyst estimates surveyed by Bloomberg. Sales rose 4.3% to US$11 billion.

Wilmar’s profit dropped a second straight quarter as higher soybean prices, combined with escalating competition hurt crushing margins for companies including China Agri-Industries Holdings. Its oilseeds and grains division posted a pretax loss of US$40 million in the quarter on negative crush margin and depreciation of the yuan against the U.S. dollar, Wilmar said today.

“The poorer performance was largely due to losses at oilseeds and grains from a continued difficult operating environment in China and lower plantation profits reflecting lower prices, a drop in production yield and higher production cost,” Wilmar said in the statement.

The stock gained 1.8% to $3.39 at the close in Singapore today, before the earnings announcement. Wilmar has declined 32.2% this year, making it the worst performing member on the benchmark Straits Times Index.

“Crush margins in China remain weak,” Nomura Holdings Inc. analysts Tanuj Shori and Vishnuvardana Reddy wrote in a note dated Aug. 1. “We worry Wilmar may have been at the wrong end of rising soybean prices.”

The stock gained 1.8% to $3.39 at the close in Singapore today, before the earnings announcement. Wilmar has declined 32.2% this year, making it the worst performing member on the benchmark Straits Times Index.

China Agri, the Hong Kong-listed unit of China’s largest grains trader Cofco, said June 28 first-half profit fell as grain and soybean prices rose while demand for starch and rice was sluggish and China’s oilseeds crushing capacity continued to expand.

Soybean futures traded in Chicago averaged US$14.03 a bushel in the quarter, compared with US$13.61 a bushel a year earlier, and reached a record $16.915 a bushel on July 23 as the U.S. endured its worst drought in a half century.