- PETALING JAYA: Integrated Logistics Bhd will focus on the construction of its Dubai warehouse while diversifying into oil and gas, chemical storage and cold room to mitigate the impact of the global economic crisis.
“Honestly, we cannot see any growth at the moment. Our business in China is down by 20% to 25%. Our business in Malaysia is also down by 30% to 35%. Our volume is down tremendously.
“Our objective now is to sustain the company,” said chief executive officer Tee Tuan Sem. Integrated Logistics is involved in providing warehousing and logistics services.
Tee said construction of the warehouse in Dubai began in the fourth quarter of 2008 and was slated for completion by mid-2010.
He said the facility would start operation in the first quarter of 2011 and cater mainly to consumer products.
“I’m bullish on the demand because the warehouse in Dubai is something the group has not done yet. It is a cold room and is automated,” he said.
Tee said that last year, Integrated Logistics sold about RM120mil worth of assets in China and Malaysia in line with its growth strategy.
He said the company’s cash position was good and that it was not under financial stress.
Integrated Logistics recorded a pre-tax profit of RM31.9mil for the financial year ended Dec 31 compared with RM14.9mil in 2007.
The China operations contribute 80% to the company’s bottomline while Malaysia contributes 20%.
On its performance so far this year, Tee said: “China (operations) is still profitable but we are struggling in Malaysia.”
ILB announced its earnings (see below table). Losses were around 9.42 million.
Kudos to the management for being totally honest on their business outlook.
This is so much better than fund managers who announces on the press that they are bullish, while deep down, they are disposing their shares like plague.
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