Luxchem earnings down in Q4

PETALING JAYA: Luxchem Corp Bhd’s net profit fell 30% to RM9.49 million in the fourth quarter ended Dec 31, 2017, from RM13.5 million in the previous corresponding quarter on lower gross profit and higher administrative expenses due to currency foreign exchange losses.
Luxchem is involved in marketing and distributing industrial chemicals and materials, and manufacturing unsaturated polyester resins and latex chemical dispersion and related products for the latex industry.
Revenue for the quarter grew 6% to RM197.2 million, compared with RM186.4 million in the same period a year ago mainly due to higher raw material prices.
For the full year, its net profit fell 6% to RM40.7 million, from RM43.5 million a year ago, while revenue jumped 15% to RM806.7 million, against RM701.5 million previously, mainly attributable to the trading segment.
On its prospects, the group said its performance can be affected by fluctuations in the US dollar-ringgit exchange rate, raw material price fluctuations, raw material demand and supply and competition.
Luxchem said it will continue to improve its productivity and efficiency to face these external factors.
The board proposed a single-tier second interim dividend of 1.5 sen per ordinary share for the financial year ended Dec 31, 2017.
Luxchem fell 3 sen or 3.95% to 73 sen today with 1.3 million shares traded.