KUALA LUMPUR (March 29): LB Aluminium Bhd's net profit fell marginally by 0.58% to RM14.79 million for the third quarter ended Jan 31, 2022 (3QFY22), from RM14.88 million a year earlier, due to a higher tax provision and losses in its property business.

Earnings per share dropped to 3.4 sen per share from 3.42 sen, the group’s filing with Bursa Malaysia showed.

Revenue for the quarter, however, rose 36.6% to RM197.11 million from RM144.30 million in 3QFY21, on higher average selling prices recorded by the aluminium segment amid a rise in global aluminium prices.

LB Aluminium said its property segment suffered a loss of RM1.41 billion during the quarter, due to a lower contribution by its associate, Vistarena Development Sdn Bhd, as well as higher preliminary expenses incurred by the property subsidiaries.

The group said its quarterly earnings were cushioned by a strong performance from the aluminium division — with a 73.5% jump in profit before taxation on the back of better margins and gain on disposal of factory land and building of RM4.2 million.

Cumulative nine-month net profit fell 13.59% to RM24.66 million, from RM28.54 million a year earlier, due mainly to lower contribution from the associate and higher preliminary expenses incurred by the property subsidiaries.

Revenue for the period rose 23.05% to RM470.50 million from RM382.35 million, thanks to the higher average selling prices recorded by the aluminium segment

LB Aluminium said its aluminium segment’s existing orders on hand and the trend of the incoming orders are improving.

“We continue to monitor the fluctuations of global aluminium prices and adjust our selling prices whenever necessary to protect our margins,” it added.

For the property segment, the group said its subsidiary, Pembinaan Serta Hebat Sdn Bhd, expects to launch the Satu Anggota Satu Rumah project with a gross development value of RM634.1 million in Bandar Tasik Selatan in the second quarter of 2022.

Shares in LB Aluminium closed down one sen or 1.85% at 53 sen on Tuesday (March 29), giving the group a market capitalisation of RM230 million.