by millionairemind » Fri Jul 30, 2010 12:40 pm
Published July 30, 2010
GMG posts Q2 profit of $9.5 million
Turnover more than doubles as rubber volume and selling prices rise
By NICHOLAS YEO
SINGAPORE-LISTED rubber plantation group GMG Global announced a return to net profit of $9.5 million for the second quarter ended June - from a net loss of $3.8 million a year ago. This resulted in an increase in first-half net profit to $15.8 million, from $101,530 in H1 2009.
The more than doubling in Q2 turnover to $80.7 million from $38.5 million came with 19,069 tonnes of rubber sold, up from 18,342 tonnes in Q2 2009.
Also, the price of rubber was higher in Q2 2010, averaging $4,233 a tonne, versus $2,101 in Q2 2009.
GMG Global says that it is on track to increasing tonnage output by double digits and remains positive on the fundamentals of the business and longer-term prospects for natural rubber.
The group yesterday also announced board and management changes.
Current chairman Xian Ming will become CEO and executive director. Zhang Zenggen will become non-executive chairman in place of Mr Xian.
Mr Zhang is an executive director and chief executive of Sinochem International Corporation, a Chinese state-owned enterprise that is China's largest rubber player. Sinochem has a 51 per cent stake in GMG Global.
Elson Ng Keng Kwang will relinquish his current role as executive director, CEO and president of GMG Global and become president of strategic projects and chief adviser to the CEO, overseeing projects in Africa and South-east Asia.
All of the changes are effective immediately.
GMG Global is the only pure natural rubber company listed in Singapore and has supplied processed rubber and latex to big tyre makers such as Goodyear and Bridgestone.
The company focuses on centrifuged latex and tyre-grade rubber and two supplementary products - block rubbers of latex and skim.
GMG's stock price closed one cent up yesterday at 22.5 cents a share.
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