KUALA LUMPUR: Kossan Rubber Industries Bhd posted 2.5% lower Q2 net profit of RM44.7mil as compared to RM45.84mil in the previous corresponding quarter due to an increase in costs and a less favourable exchange rate in the gloves division.The group said revenue rose 1.28% to RM496.79mil from RM490.51mil in the same quarter last year.In the gloves segment, revenue slowed 2.36% to RM432.36mil in 2Q18 from RM442.83mil in 2Q17 and profit before tax (PBT) dropped 11.94% to RM46.34mil compared with RM52.62mil in the year-ago quarter. "The lower performance was mainly attributable to the time-lag in cost-pass-through arising from the increase in raw material costs (NBR +13.16%), natural gas prices (+21.91%) as well as the less favourable USD/MYR exchange rate (-8.82%) compared to the same quarter of the previous year. "The demand for glove products in the current quarter continues to be strong with stable average selling prices and higher volume sold (Vol. "The Group expects the expansion, which is currently in the planning stage, to take eight years to complete and the additional capacity which will come on-stream progressively, is projected to add a total additional output of 45 billion pieces of gloves per annum when completed. "The land’s strategic location with excellent connectivity and available sources of utilities (natural gas, electricity and water) and local manpower will facilitate the Group’s longer-term expansion programme."

Source: The Star August 17, 2018 11:03 UTC