JARDINE Cycle & Carriage (JC&C) said on Wednesday (Nov 13) that its results for the first nine months of the year were down slightly year on year.
Despite higher underlying profits in the group’s businesses in Indonesia and larger sales volumes in Vietnam, a weaker rupiah and dong weighed on their contributions, said the group in an interim management statement issued on the local bourse.
The group owns 50.1 per cent of the Indonesian conglomerate Astra, which recorded weaker car sales during the nine-month period due to a subdued wholesale car market, though its market share held up.
Motorcycle sales grew slightly, noted the mainboard-listed group.
The diversified Astra has interests in the automotive, financial services, heavy equipment, mining, construction and energy, agribusiness, infrastructure, information technology and property sectors.
Its heavy equipment and mining division reported a “marginally higher” profit. Larger mining contracting volumes, as well as greater gold volumes and prices, were partly offset by lower coal profits and heavy equipment sales.
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Higher crude palm oil selling prices were offset by lower sales volumes of the vegetable oil and its derivatives.
Profit in Astra’s infrastructure and logistics division continued to grow on the back of higher toll revenue and traffic.
Its financial services division also recorded higher earnings on larger loan portfolios.
Automotive dealership Tunas Ridean – of which the group owns 49.9 per cent – similarly logged lower automotive sales volume and lower profits during the period.
In Vietnam, Thaco registered an increase in automotive sales volume on the back of improving consumer sentiment, but its contribution to the group was held back by the weaker dong.
The performance of power and water infrastructure business group Ree – of which the group owns 35.7 per cent – was weakened by lower earnings from its power-generation business linked to unfavourable hydrology and lower demand for hydropower during the period.
In October, JC&C completed its public tender offer to acquire additional Ree shares, increasing its shareholding to 35.7 per cent from 34.9 per cent.
Over in Singapore, the group recorded higher sales volume and margins, but its overall profit was saddled by a lower contribution from its used-car operations.
In August, JC&C sold its 25.54 per cent interest in Siam City Cement and recycled US$344 million of capital from that. The group described the divestment as being consistent with its strategy to evolve its portfolio in line with its long-term growth and sustainability objectives.
Singapore-headquartered JC&C said it expects to maintain momentum in its underlying performance for the remainder of the year and “remains confident” that the quality of its overall portfolio will deliver long-term growth.
JC&C is 84 per cent-owned by the Jardine Matheson Group.
Shares of JC&C closed Wednesday at S$27.85, down S$0.03 or 0.1 per cent.
