KUALA LUMPUR, Aug 29 (Reuters) - Malaysia’s Sime Darby Bhd , the world’s largest palm oil planter by landbank size, said fourth quarter net profits dropped 16.1 percent on higher operating expenses and warned that a deteriorating global economy may hurt prospects.
The company said in a stock exchange filing on Wednesday that fourth quarter to June 30 net profit dropped to 1.09 billion ringgit ($349.86 million) from 1.31 billion ringgit a year earlier.
Revenue for quarter climbed 7.6 percent to 14.1 billion ringgit, said the company whose operations span from plantations to motoring and property.
Net profit for the financial year ended June 30 rose 13.3 percent to 4.15 billion ringgit from 3.66 billion ringgit in the same period last year due to higher earnings from all segments except its plantation unit.
Full year net profit of 4.15 billion ringgit beat the 4 billion ringgit profit estimate of analysts tracked by Thomson Reuters I/B/E/S.
Sime Darby proposed a final dividend of 25 sen per share for FY2011/2012. Together with an earlier interim dividend of 10 sen per share, total dividend for the year is 35 sen per share.
“We are focused on our growth trajectory, which includes expanding the plantation landbank, upscaling the value of property landbank and increasing facilities and capacity for the industrial, motors, utilities and healthcare divisions,” Sime Darby said in a statement.
“Although the market segments in which the group operates remain relatively positive, any further deterioration of economic conditions could impact the group’s performance in the coming year.”
Sime shares rose 0.1 percent to 9.81 ringgit after the results announcement. ($1 = 3.1155 ringgit) (Reporting By Al-Zaquan Amer Hamzah; Editing by Niluksi Koswanage)