Highlights
JARDINE MATHESON HOLDINGS LIMITED
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 1995
Jardine Matheson Holdings Limited today
announced that its 1995 earnings reflected mixed results from
its main operating companies. The strategic emphasis during the
year was on further improving the focus of the Group's core businesses
and investing throughout Asia for long-term growth.
RESULTS
The consolidated net profit after taxation
and outside interests for the year ended 31st December 1995 was
US$420 million, a decrease of 7% from 1994. The result includes
an exceptional profit of US$94 million arising from the disposal
of the Group's interest in an instalment finance company.
Earnings per share for the year were US¢72.05,
compared with US¢77.77 for 1994. Excluding the exceptional
profit, earnings per share decreased by 28%. Net asset value
per share at the year end was US$5.63, unchanged from the previous
year.
DIVIDENDS
The Directors recommend a final dividend
of US¢17.20 per share, payable in cash with a scrip alternative,
which, together with the interim dividend of US¢7.80 per
share, will make an unchanged total annual dividend of US¢25.00
per share.
GROUP REVIEW
Turning to the operations of the Group,
the Chairman, Mr Henry Keswick, said that Jardine Pacific's trading
performance was held back by poor consumer demand affecting the
Trading & Distribution businesses in Japan and Hong Kong and
by difficulties in the Restaurant operations in Australia. As
a result, trading profit was 7% down on 1994 at US$152 million.
Good results were, however, reported by Gammon Construction and
Jardine Schindler, which both entered 1996 with strong order books.
Pacific Finance, the new instalment finance joint venture with
Jardine Fleming, also made an encouraging start. Jardine Pacific's
strategy of developing large, regional businesses with growth
potential made good progress. Initiatives taken included a major
investment in the principal cargo handling facility for Hong Kong's
new international airport, an investment in a life assurance business
in Thailand and the acquisition of a technology products distribution
business in Hong Kong.
Jardine Fleming experienced lower levels
of activity in Asian securities markets in 1995, reporting a profit
of US$122 million, 42% below its 1994 record result. Funds under
management remained steady at some US$22 billion, and steps were
taken to expand the company's investment management, securities
broking and corporate finance activities throughout Asia, strengthening
its position as one of the Region's leading investment banks.
Jardine International Motors saw a decline
in trading profit in 1995 of some 18%. Hong Kong experienced
a weakening market for new vehicles, although Zung Fu increased
both market share and revenue from after-sales operations. Sales
in China continued to suffer from the effect of import restrictions.
There was a further improvement by Lancaster in the United Kingdom,
but the reduction in government incentives in France affected
Cica's result. The group's interests in Asia were expanded by
the acquisition of a 25% stake in P. T. Tunas Ridean,
one of the largest independent motor vehicle dealerships in Indonesia.
JIB's underlying earnings showed a 13% decline
due to continuing pressure on margins in the industry, and its
reported result was further reduced by reorganisation costs in
the United Kingdom and goodwill write-offs relating to the disposal
of its United States retail operations. The restructured JIB
is focusing on its Asia-Pacific operations and its specialist
services in the United Kingdom and the United States.
Dairy Farm reported a 35% reduction in profit
to US$149 million, after an exceptional charge of US$36 million
in respect of an inventory adjustment in Australia. While sales
rose, trading profit was 9% down due to tighter margins, investment
in new markets and development costs incurred in responding to
a changing retail environment. The established Asian businesses
made satisfactory progress, but in Australia Franklins' trading
result was lower due to reduced margins and repositioning costs.
Simago in Spain saw some improvement in its underlying performance,
but in the United Kingdom intensified competitive pressure resulted
in Kwik Save's profit falling 10%. Dairy Farm launched supermarket
chains in Japan and China, and took steps to develop interests
in Indonesia and India.
Hongkong Land achieved a steady growth in
operating profit as a result of continuing positive rental reversions,
but the group's share of the losses reported by Trafalgar House
led to a 30% fall in net profit to US$257 million. The company's
net asset value per share declined 18% as a softening rental market
in Hong Kong led to a reduction in property values. Hongkong
Land has agreed to accept an offer for its interests in Trafalgar
House, which, when completed, will lead to a write-back of some US$218 million in its 1996 accounts. Hongkong
Land's strategy for its future development is to concentrate on
property and infrastructure investments in Asia.
Mandarin Oriental achieved a record profit
of US$54 million in 1995, an increase of 10% over 1994, as a result
of a strong performance in Hong Kong. The company continues to
expand its portfolio of luxury hotels, principally in the Asia-Pacific
Region. Its newly acquired hotels in Indonesia and Hawaii re-opened
early in 1996 after restoration, and the construction of its new
hotel in Kuala Lumpur has commenced.
Cycle & Carriage had an excellent year,
with profit increasing 47% to S$182 million due to good contributions
from the company's motor operations in Singapore, Malaysia and
Australia and from its residential property interests in Singapore.
Jardine Strategic acquired a 9% interest
in Edaran Otomobil Nasional Berhad, a major Malaysian motor distribution
and finance group, underlining the Group's commitment to the developing
Malaysian economy.
PROSPECTS
In conclusion, Mr Henry Keswick said, "The Group enters 1996 with considerably strengthened underlying businesses and the prospect of an improved trading performance for the year. Jardine Matheson's commitment to building its businesses into market leaders in the Asia-Pacific Region provides an excellent foundation for the Group's long-term growth."
| © Copyright 1996-2008 irasia.com Ltd. All rights reserved. |
|
DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any
information provided on this website. Under no circumstances shall irasia.com Ltd be liable
for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website. |