Saturday, October 10, 2009

Top Glove Q4 profit more than doubles to RM56.8m

Published: 2009/10/09

The world's largest rubber glove maker, Top Glove Corp Bhd (7113), more than doubled its fourth-quarter net profit, driven by strong demand for its products amid the ongoing flu scare and cost-saving measures.

The company also declared a final dividend of 15 sen a share, bringing the total payment for the full year to 22 sen, double what it paid in 2008.

Top Glove made a net profit of RM56.8 million for the quarter to August 31 2009. Revenue was up 17.2 per cent to RM427.

Its full-year net profit was RM169.2 million, a 54 per cent jump, while revenue was up 11 per cent to RM1.53 billion.

This is also its best yearly net profit since 2001 and its highest dividend payout in nine years.
"The continuing strong profit growth shows that Top Glove is efficient and had adapted well to the challenging business environment resulting from cost-saving measures implemented at all factories," chairman Tan Sri Lim Wee-Chai said in a press release.

The group now had a net cash position of RM177 million and some RM197.2 million cash in the bank as at August 31 2009.

With strong profit growth, Lim said Top Glove is optimistic of its future despite ongoing global economic challenges.

"With a large customer base spread over more than 180 countries worldwide and with a diversified range of good quality products, coupled with a team of dedicated employees, we are confident in achieving continuous growth and good profitable performance in next financial year," he said.

To meet rising demand, Top Glove is in the process of installing additional nine latex concentrate centrifuge machines in Thailand with targeted completion by December 2009.

The glove maker also said it will build its 21st factory in Klang with construction scheduled to be completed in July next year. It now produces 31.5 billion gloves a year and has more than 850 customers worldwide.

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