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Jardine Matheson Dishes Out 6% More Dividends

200px-Jardine_Matheson_Holdings_logo.svg Jardine Matheson Holdings (SGX: J36) released its first six months of 2013 (1H 2013) results last Friday. The company is part of Jardine Strategic Holdings (SGX: J37), which released its results last Friday as well.

Overall, there were mixed results from the businesses held by Jardine Matheson in the first half of the year. Improved contributions from Hongkong Land (SGX: H78), Mandarin Oriental (SGX: M04) and Jardine Motors compensated for reductions in Astra, Dairy Farm and Jardine Pacific, leading to an improvement in profit for the period.

The total revenue of the company was US$31.4 billion, compared to US$30.3 billion in the first half of 2012; an increase of 4%. Jardine Matheson’s underlying profit for 1H 2013 was US$753 million, 7% above 1H 2012. Underlying earnings per share came up to US$2.05, 6% higher than the previous year.

Jardine Schindler produced solid profit growth. Hong Kong Air Cargo Terminals recorded lower results due to increased rebates and staff costs. The group’s results were also reduced by a loss in KFC restaurants in Taiwan and a disappointing performance from Jardine OneSolution. Jardine Motors produced some earnings recovery as its UK operations did better and its losses in mainland China reduced. Hongkong Land benefited from higher rents in its commercial properties and the completion of two huge residential projects in Singapore.

Dairy Farm (SGX: D01) produced good sales growth in most of its major operations, with the performance in Hong Kong standing out. However, there was a modest decline in earnings due to difficult conditions in Malaysia and Singapore led to increased costs and reduced margins.

Mandarin Oriental enjoyed good performances across most of its portfolio. The results for Jardine Cycle & Carriage were lower in the first half of the year and Astra’s reported earnings declined, further reduced on translation by a softer rupiah exchange rate.

The Board has declared an increased interim dividend of US37 cents per share, up 6% from US¢35 the previous year.

Sir Henry Keswick, Chairman of Jardine Matheson Holdings, said, “Faced with the continuance of challenging conditions in many of their markets, most of our businesses have adapted well and are trading satisfactorily. The Group’s overall performance for the full year is expected to be broadly unchanged from last year.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.