Highlights from the First Quarter Earnings at Jardine Cycle & Carriage

Jardine_Cycle_&_Carriage_LogoJardine Cycle & Carriage (SGX: C07), which has an interest of just over 50% in Astra, an Indonesian-listed conglomerate, and other motor interests in Southeast Asia, released its first quarter results on Wednesday. It is also part of the locally-listed giant, Jardine Matheson (SGX: J36), and is also majority-owned by Jardine Strategic Holdings (SGX: J37).

Revenue for the quarter dipped 10% year-on-year to US$4.7 billion while net profit slumped 6%, from US$231 million last year to US$218 million. As a result, earnings per share was 6% down to 61.3 US cents.

Astra contributed US$200 million to the net profit, some 9% lower than the previous year due to a weaker rupiah. However, in absolute rupiah terms, Astra’s net income was actually 10% higher than the previous year due to better results from its agribusiness and contract mining operations, partially offset by a decline in earnings from its automotive and financial services businesses.

The net profit contribution from the other motor interests was at US$19 million, up 53% due to improved results from all businesses other than Tunas Ridean, an Indonesian company.

Jardine C&C had a total bank loan of US$5.5 billion while the cash balance stood at US$1.7 billion, as of 31st March 2014.

Looking ahead, Ben Keswick, Chairman of the firm said that the outlook for the remainder of the year is expected to be challenging as Astra is anticipating further competition in the car market and a subdued outlook for coal prices. The performances of the other motor interests are likely to be mixed, he added.

At the closing price of S$46.91, Jardine C&C is trading at a historical PE ratio of 15 and sports a dividend yield of 3%.