SCOMI posts lower Q2 profit

Scomi Engineering Bhd has reported a lower pre-tax profit of RM1.595 million for its second quarter ended June 30, 2010, compared to RM29.283 million in the same quarter last year.

The profit was achieved over a reduced revenue of RM87.43 million as against RM151.17 million previously, it said in a filing to Bursa Malaysia today.

The company said the drop in performance during the quarter was mainly due to lower contribution from the machine shop business as well as lower revenue and cost revision in its rail unit.

Notwithstanding the challenges faced by its rail unit, the company is steadily meeting its delivery deadlines whereby it will start delivery of its four-car monorail sets to India in October this year, it said in a statement issued later.

Meanwhile, Scomi Engineering will continue to focus its marketing efforts to promote its monorail technology in countries such as Brazil, where the company is re-tendering for the Tiradentes Monorail Project in Sao Paulo.

Others include in India, with potential projects in Pune, Thane, Bangalore and Chennai as well as in Indonesia.

On June 30, 2010, Scomi Engineering completed the sale of its machine shop business to Sumitomo and following this, the company is now focused on positioning itself as an urban transportation solutions provider.

"Malaysia has recently outlined the 'Greater KL' plan and Scomi Engineering will be on the lookout for opportunities to contribute to the Greater KL initiative," said president Syahrunizam Samsudin.

Scomi Engineering is a leading provider of public transportation solutions through the designing and manufacturing of coaches, rail wagons, monorail systems, and special-purpose vehicles. -- Bernama