SINGAPORE (Feb 27): Jardine Cycle & Carriage, which is celebrating its 120th Anniversary, reported a 55% fall in FY18 earnings to US$420 million ($566 million) from a year ago, after accounting for net non-trading losses of US$438 million due to unrealised fair value losses related to non-current investments.
FY18 revenue for the group increased 10% to US$19 billion, due largely to revenue growth in most of Astra’s businesses which contributed US$719 million to the group’s underlying profit, an increase of 15%. The underlying profit from its Direct Motor Interests was 19% higher at US$145 million, while its Other Strategic Interests contributed an underlying profit of US$71 million, up from US$34 million in the previous year.
Jardine C&C says the group’s financial position remains strong, with shareholders’ funds at US$6.1 billion and net asset value per share at US$15.56 at the year end, albeit down by 4% from the end of 2017, due to translation losses resulting from the weaker Rupiah. The group says it continues to invest, with capital expenditure and investments amounting to US$3.1 billion in 2018. Consolidated net debt, excluding financial services companies, was US$2.2 billion at Dec 31 2018, representing gearing of 16%.
The board is recommending a final one-tier tax dividend of 69 US cents per share which, together with the interim dividend, will produce a total dividend for the year of 87 US cents per share.
In its outlook, the group says Astra is likely to face a number of macro-economic and commercial headwinds in 2019, while the group’s Direct Motor Interests and Other Strategic Interests may also see slower growth.
Meanwhile, Astra will continue to seek opportunities in Indonesia to expand its existing activities and move into new sectors. In 2018, Astra expanded its operations with further investments in toll roads, mining and property, as well as an interest in Gojek, Indonesia’s leading multi-platform technology group.
Shares in Jardine C&C closed 21 cents higher at $36.63 on Wednesday.
