UPDATE: Jardine Matheson 2011 Profit Up 12%; Expect More Fragility In Some Markets
March 02 2012 - 6:32AM
Dow Jones News
HONG KONG (Dow Jones)--Conglomerate Jardine Matheson Holdings
Ltd. (JAR.LN), one of Asia's oldest trading companies, said Friday
its net profit rose 12% last year but that growth would be more
challenging in some of its markets in 2012 because of the
uncertainties in the global economy.
The firm, whose businesses range from hotels and property to
supermarkets, posted a net profit of US$3.45 billion for the 12
months ended Dec. 31, up from US$3.08 billion the previous
year.
"There may be increasing fragility in some of the group's
markets in the year ahead as the present uncertain economic
conditions show little sign of improvement," Chairman Sir Henry
Keswick said in a statement.
Managing Director Anthony Nightingale said the group plans to
have substantial commitments in the real-estate sector in
China.
"We are still at the early stage of residential development in
China. In other words, there's a lot more to come," Nightingale,
who will step down in April as managing director, told reporters
Friday. Having joined Jardine in 1969, Nightingale will retire from
the position of managing director in April and be succeeded by Ben
Keswick, a nephew of the Jardine chairman.
Hongkong Land Holdings Ltd. (H78.SG), Jardine's property unit,
has residential projects in Beijing, Chongqing, Chengdu and
Shenyang, and acquired several development sites including a
commercial site in Wangfujing, Beijing last year. It is the largest
commercial landlord in Hong Kong's upmarket Central business
district and also has properties in Singapore.
Nightingale said the group is looking to broaden its property
portfolio to one or two new Southeast Asian markets.
The Singapore- and London-listed company, which generates most
of its earnings in Greater China and Southeast Asia, posted an
underlying profit of US$1.50 billion for 2011, up 10% from US$1.36
billion in 2010.
Analysts prefer to look at underlying profit because net profit
can be distorted by revaluation gains or losses, which don't affect
cash flow.
The Hong Kong-based conglomerate derived 57% of its 2011
underlying profit from Southeast Asia and about 40% from Greater
China.
Nightingale said Southeast Asia's share of the group's
underlying profit was bigger than that of Greater China for the
second consecutive year, largely due to the strong performance of
its Indonesian automobile unit, Astra International (ASII.JK).
Astra contributed US$561 million to Jardine's underlying profit
in 2011, up from US$437 million in the previous year.
Hongkong Land, which posted its results Thursday, accounted for
US$289 million of the group's underlying profit, down from US$332
million in the previous year, as fewer residential projects were
completed. Dairy Farm International contributed US$301 million, up
from US$259 million the previous year.
-By Polly Hui, Dow Jones Newswires; 852-2802-7002;
polly.hui@dowjones.com
Jardine Matheson (PK) (USOTC:JMHLY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Jardine Matheson (PK) (USOTC:JMHLY)
Historical Stock Chart
From Sep 2023 to Sep 2024