Less Horrific News: Tradewinds Plantation's Earnings

Tradewinds Plantation reported its earnings last night. Here are the numbers in brief.

As you can see the current quarter's net profit is only 4.337 million compared to 48.628 million it achieved a year earlier.

Here are two set of articles covering Tradewind Plantation's earnings.

On the Edge Financial Daily. http://www.theedgemalaysia.com/business-news/213660-tradewinds-plantations-1q-net-profit-tumbles-911-to-rm434m-.html

• Tradewinds Plantations 1Q net profit tumbles 91.1% to RM4.34m Written by Surin Murugiah of theedgemalaysia.com
  Wednesday, 16 May 2012 17:26
  
  KUALA LUMPUR (May 16): Tradewinds PLANTATION [] Bhd net profit for the first quarter ended March 31, 2012 tumbled 91.1% to RM4.34 million from RM48.63 million a year earlier, due to lower production and prices of palm products, higher operating expenses of the plantation segment and operating loss incurred by the overseas operations.
  
  The company said on Wednesday that its revenue for the quarter jumped to RM608.45 million from RM229.93 million in 2011, due to the contribution from Mardec Berhad which was acquired in October 2011.
  
  Earnings per share was 0.69 sen compared to 7.73 sen a year earlier, while net assets per share was RM3.44.
  
  On its outlook, Tradewinds Plantation said that based on the prevailing prices of palm products, the forecast increase in fresh fruit bunches production in the coming months and the improving rubber products trading margins, the company expected the results for the remaining periods of the current financial year to be better than the current quarter.

Net profit tumbled 91.1%.

That sounded rather horrific.

Here's the Business Times article.

• Tradewinds Q1 profit drops to RM10.509m
  Published: 2012/05/17
  
  KUALA LUMPUR: Tradewinds Plantation Bhd’s pre-tax profit for the first quarter ended March 31 fell to RM10.509 million from RM75.669 million reported in the corresponding quarter of last year.
  
  In contrast, revenue for the three months rose to RM608.45 million from RM229.93 million previously.
  In a statement to Bursa Malaysia, Tradewinds attributed the drop in profit to lower production and prices of palm products, higher operating expenses in the plantation segment and operating loss incurred by the overseas operations in the manufacturing and trading segment.
  
  The higher revenue, meanwhile, was mainly due to the contribution from Mardec Bhd which was acquired on last October 10, the company said.

The Business Times article talked about 'pre-tax profit' and it EVEN mentioned that revenue increased!

Eh? Pre-tax profit? Tax not important to talk about?

( Star biz version: http://biz.thestar.com.my/news/story.asp?file=/2012/5/17/business/11306064&sec=business )