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10 Quick Things That Investors Should Know About Jardine Cycle & Carriage Ltd’s 2018 First-Half Results

At the end of July, Jardine Cycle & Carriage Ltd (SGX: C07), or Jardine C&C, reported its 2018 first half earnings update.

As a quick introduction, Jardine C&C is a conglomerate with a diverse set of businesses, with segments such as automotive, financial services, heavy equipment and mining, agribusiness, information technology and others. These businesses are grouped into three segments, namely, Astra International, Direct Motor, and Others.

Here, let’s look at 10 things that investors should know from Jardine C&C’s latest earnings update:

1. Revenue increased 10% year-on-year to US$9.2 billion.

2. Operating profit for the period improved 1% year-on-year to US$797.1 million.

3. Underlying profit attributable to shareholders climbed 10% year-on-year to US$414 million.

4. Similarly, underlying earnings per share (EPS) was up by 11% year-on-year to US$1.05.

5. For the first half of 2018, operating profit margin was 8.7%, down from 9.5% in the corresponding period last year.

6. Year-to-date, Jardine C&C generated operating cash flow of US$621.6 million, down from US$852.7 million last year. The lower operating cash flow was due to negative working capital movements and higher tax paid.

7. As at 30 June 2018, the company’s net debt stood at US$5.1 billion, up from US$4.2 billion, as at 31 December 2017.

8. All segments reported higher underlying profit. Astra’s underlying profit was up by 12% year-on-year to US$354 million, Direct Motor’s underlying profit was up 18% year-on-year to US$74 million while other strategic interests’ underlying profit was up by 394% year-on-year to US$41 million.

9. The company recommended a dividend per share of 18 US cents, unchanged from a year ago.

10. Jardine C&C’s chairman, Ben Keswick, commented:

“The Group performed well during the first half of the year, with a 10% increase in underlying profit attributable to shareholders. For the rest of the year, Astra’s overall performance is expected to be satisfactory, led by its heavy equipment and mining businesses although there are concerns over competitive pressures in the car market.

The Group’s Direct Motor Interests and Other Strategic Interests are expected to continue to perform strongly.”

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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 Lawrence Nga doesn’t own shares in any companies mentioned.