WASHINGTON, Sept. 2 (UPI)
U.S. crude oil inventories dropped by 0.4 million barrels in the week ending Aug. 28, the U.S. Energy Information Administration said Wednesday.
Crude inventories fell from 343.8 million barrels to 343.4 million barrels during the week but remain above the upper boundary of the average range for this week of the year, EIA said.
Gasoline inventories declined by 3 million barrels to 205.1 million barrels, but remain in the upper half of the average range.
Supplies of distillate fuels, which includes heating oil, rose by 1.2 million barrels to 163.6 million barrels.
Finished gasoline inventories and stocks of gasoline blending components both fell during the week, EIA reported.
At 9.2 million barrels a day, demand for gasoline over the past four weeks is 0.5 percent higher than demand during the same period a year ago.
Distillate fuel demand has dropped 7.3 percent in the past four weeks compared to a year ago.
Jet fuel demand is also down, off 12.1 percent from a year ago, the report said.
© 2009 United Press International, Inc. All Rights Reserved.
*
Monday, September 7, 2009
Opec Not likely to cut Output
Published: Monday September 7, 2009 MYT 7:55:00 AM
OPEC not likely to cut output at Vienna Wed meeting
VIENNA: With oil prices about where OPEC wants them and a modest economic upturn in the offing, the oil cartel isn't likely to tighten the taps when its leaders meet this week in Vienna.
Prices have been hovering near $70 a barrel, and with returning growth expected to support demand, analysts don't expect the Organization of Petroleum Exporting Countries will feel any need to cut output targets.
"Absolutely nothing," said John Hall, of John Hall Associates in London.
OPEC President Jose Botelho de Vasconcelos, who is also Angola's oil minister, said last week that signs of recovery suggest the 12-member group won't need to intervene. "Everything shows they will keep output unchanged," he said.
Kuwait also says it thinks oil prices are stable and there's no need to cut production, even though stockpiles are rising. And Algeria, Kuwait, Libya, Qatar and the United Arab Emirates have signaled they're happy with the current output quota of just under 25 million barrels a day.
Saudi Arabia, OPEC's No. 1 producer and most influential member, has said $75 a barrel is a fair price for both consumers and producers - a level that would allow for continued investments in the oil sector without undermining efforts at global economic recovery. "Unless Saudi says, 'We're going to cut by a million barrels a day,' nothing's going to happen" at Wednesday's meeting, Hall said.
Benchmark crude for October delivery crested $68 a barrel Friday in electronic trading on the New York Mercantile Exchange. Over the past six weeks, it has fluctuated in the $65-$75 range amid conflicting signs of economic recovery.
OPEC meets more than a third of the world's annual oil demand, which the International Energy Agency has put at nearly 86 million barrels a day for 2008 - about 2.5 million barrels more than for recession-ridden 2009. The economic downturn has taken such a big bite out of demand for OPEC crude, it will take four more years just to recover to 2008 levels, the cartel predicts in its latest outlook.
Still, stockpiles abound despite recent OPEC production cuts: The U.S. Energy Department said last month that U.S. crude stocks rose by 200,000 barrels for the week ended Aug. 21.
"We're swimming in this stuff," said Stephen T. Schork, president of The Schork Group in Villanova, Pa., and editor of a newsletter tracking industry trends. Schork thinks OPEC may have to rein in output next March, but for now, oil prices "have settled into a range that the market can sustain," Schork said. "Oil that's $65 to $75 per barrel translates into gasoline prices of $2.50-$2.75 a gallon, and we know the consumer can handle that," he said.
Crude prices have taken a wild ride over the past year or so: They peaked at $147 a barrel in July 2008 and plunged close to $30 this past February before settling into their current range.
OPEC's oil market report for August cautioned that "the market is still fundamentally weak amid ample stocks of crude and products." Prices in the short term, it said, "will depend largely on economic developments."
But experts agree that markets will rebound. Morgan Stanley expects oil to average $85 a barrel in 2010, and crude prices are bound to rise with demand as the northern winter home-heating season draws near. Another perennial wild-card issue that threatens to drive up prices: hurricane season, which will run until early November and has the potential to disrupt refineries in the Gulf of Mexico. Experts say the flagging U.S. dollar - which has nudged crude prices up in recent days - also could be a factor if it keeps weakening against the euro.
The 12 OPEC members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
Iraq is the only member not bound by the cartel's production quotas.
- AP
*
OPEC not likely to cut output at Vienna Wed meeting
VIENNA: With oil prices about where OPEC wants them and a modest economic upturn in the offing, the oil cartel isn't likely to tighten the taps when its leaders meet this week in Vienna.
Prices have been hovering near $70 a barrel, and with returning growth expected to support demand, analysts don't expect the Organization of Petroleum Exporting Countries will feel any need to cut output targets.
"Absolutely nothing," said John Hall, of John Hall Associates in London.
OPEC President Jose Botelho de Vasconcelos, who is also Angola's oil minister, said last week that signs of recovery suggest the 12-member group won't need to intervene. "Everything shows they will keep output unchanged," he said.
Kuwait also says it thinks oil prices are stable and there's no need to cut production, even though stockpiles are rising. And Algeria, Kuwait, Libya, Qatar and the United Arab Emirates have signaled they're happy with the current output quota of just under 25 million barrels a day.
Saudi Arabia, OPEC's No. 1 producer and most influential member, has said $75 a barrel is a fair price for both consumers and producers - a level that would allow for continued investments in the oil sector without undermining efforts at global economic recovery. "Unless Saudi says, 'We're going to cut by a million barrels a day,' nothing's going to happen" at Wednesday's meeting, Hall said.
Benchmark crude for October delivery crested $68 a barrel Friday in electronic trading on the New York Mercantile Exchange. Over the past six weeks, it has fluctuated in the $65-$75 range amid conflicting signs of economic recovery.
OPEC meets more than a third of the world's annual oil demand, which the International Energy Agency has put at nearly 86 million barrels a day for 2008 - about 2.5 million barrels more than for recession-ridden 2009. The economic downturn has taken such a big bite out of demand for OPEC crude, it will take four more years just to recover to 2008 levels, the cartel predicts in its latest outlook.
Still, stockpiles abound despite recent OPEC production cuts: The U.S. Energy Department said last month that U.S. crude stocks rose by 200,000 barrels for the week ended Aug. 21.
"We're swimming in this stuff," said Stephen T. Schork, president of The Schork Group in Villanova, Pa., and editor of a newsletter tracking industry trends. Schork thinks OPEC may have to rein in output next March, but for now, oil prices "have settled into a range that the market can sustain," Schork said. "Oil that's $65 to $75 per barrel translates into gasoline prices of $2.50-$2.75 a gallon, and we know the consumer can handle that," he said.
Crude prices have taken a wild ride over the past year or so: They peaked at $147 a barrel in July 2008 and plunged close to $30 this past February before settling into their current range.
OPEC's oil market report for August cautioned that "the market is still fundamentally weak amid ample stocks of crude and products." Prices in the short term, it said, "will depend largely on economic developments."
But experts agree that markets will rebound. Morgan Stanley expects oil to average $85 a barrel in 2010, and crude prices are bound to rise with demand as the northern winter home-heating season draws near. Another perennial wild-card issue that threatens to drive up prices: hurricane season, which will run until early November and has the potential to disrupt refineries in the Gulf of Mexico. Experts say the flagging U.S. dollar - which has nudged crude prices up in recent days - also could be a factor if it keeps weakening against the euro.
The 12 OPEC members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
Iraq is the only member not bound by the cartel's production quotas.
- AP
*
Sunday, September 6, 2009
WTK ~ Current Year Prospect : 09 Q2
Current Year Prospects
Quarter 2, 2009
Timber
Japan, a major buyer for tropical hardwood timber products, returned to growth in the second quarter 2009, out of its longest recession since World War II. Growth in the world’s No. 2 economy is likely to continue in the coming quarters as companies restock inventories to meet a pick-up in demand at home and abroad. Notwithstanding this, going forward to the second half of 2009, the timber industry is projected to show improvement in both its demand and its selling prices. Selling price for round logs is expected to be firm given the dry weather condition in Sarawak. The low water level of rivers will mean a tighter supply of logs from Sarawak. Total plywood imported by Japan continued to drop during 2nd quarter 2009. This resulted in a significantly low inventory level in Japan and signs of tightening in the market are visible. Coupled with the expected improvement in housing starts, orders for plywood products are expected to increase during the second half of this year.
Given this, the Group remains cautiously optimistic of the industry and barring unforeseen circumstances, expects the Group’s results to improve second half of 2009. The group will also continue to monitor its various cost-cutting measures and its controls to conserve cash and focus on higher margin products.
Non-Timber Manufacturing & Trading
The current global economic downturn has affected the non-timber manufacturing and trading division, particularly with depressed demand in the primary export markets. With no sign of recovery in the near future, the division foresees the current weak market sentiment to continue until the end of 2009.
As the business outlook of the division remains challenging, the division shall endeavor to maintain its competitive advantage by streamlining its supply chain, focusing on its core products and strengthening branding to deliver differentiation to customers.
*
Quarter 2, 2009
Timber
Japan, a major buyer for tropical hardwood timber products, returned to growth in the second quarter 2009, out of its longest recession since World War II. Growth in the world’s No. 2 economy is likely to continue in the coming quarters as companies restock inventories to meet a pick-up in demand at home and abroad. Notwithstanding this, going forward to the second half of 2009, the timber industry is projected to show improvement in both its demand and its selling prices. Selling price for round logs is expected to be firm given the dry weather condition in Sarawak. The low water level of rivers will mean a tighter supply of logs from Sarawak. Total plywood imported by Japan continued to drop during 2nd quarter 2009. This resulted in a significantly low inventory level in Japan and signs of tightening in the market are visible. Coupled with the expected improvement in housing starts, orders for plywood products are expected to increase during the second half of this year.
Given this, the Group remains cautiously optimistic of the industry and barring unforeseen circumstances, expects the Group’s results to improve second half of 2009. The group will also continue to monitor its various cost-cutting measures and its controls to conserve cash and focus on higher margin products.
Non-Timber Manufacturing & Trading
The current global economic downturn has affected the non-timber manufacturing and trading division, particularly with depressed demand in the primary export markets. With no sign of recovery in the near future, the division foresees the current weak market sentiment to continue until the end of 2009.
As the business outlook of the division remains challenging, the division shall endeavor to maintain its competitive advantage by streamlining its supply chain, focusing on its core products and strengthening branding to deliver differentiation to customers.
*
WTK ~ Review of result : 09 Q2
Review of Results
For the quarter under review, the Group’s turnover was RM133.1 million as compared to RM226.1 million in the 2Q2008, representing a decrease of RM93.0 million (41.1%). The Group recorded pre-tax loss of RM3.4 million compared to pre-tax profit of RM23.5 million registered in 2Q2008. This is mainly attributed to the timber division.
Quarter 2, 2009
Timber
For the current quarter, the Group’s timber division registered a turnover of RM104.3 million, representing decrease of 45.4% or RM86.7 million as compared with RM191.0 million in the 2Q2008. This resulted in a pre-tax loss of RM3.7 million, a decrease of 116.4% compared to 2Q2008 profit of RM22.5 million. The drop is due to the continued economic slow-down and financial crisis world-wide.
On a year-to-date (YTD) basis, the timber division registered a turnover of RM190.5 million, representing decrease of 40.8%, as compared to the previous corresponding period of RM321.7 million. This is attributed to the decrease in logs and plywood sales volume of 24.2% and 47.7% respectively. Consequently, the division recorded a net loss of RM15.6 million, a substantial decrease of 160.2% or RM41.5 million when compared to RM25.9 million pre-tax profit registered in the previous corresponding period.
On a year-on-year (YOY) basis, average round log prices dropped by approximately 9.8% compared to prices registered in 2Q2008, whilst sales volume dropped by 36.8% compared to 2Q2008. On a YTD basis, average round log prices also dropped compared to the corresponding period, that is by approximately 9.1%. The Group’s key export markets for round logs is India (66%), Vietnam (10%), Japan (5%), China (5%) and the remaining 14% exported to Asian countries including Taiwan, South Korea and Hong Kong.
As for the Group’s plywood division, sales volume for the quarter in review decreased 42.1% as compared with 2Q2008, whilst, average selling prices decreased by 18.5% as compared to 2Q2008. On a YTD basis, average plywood prices were lower by 8.6% whilst volume decreased 47.7%. The Group’s key plywood markets for the quarter in review were Japan (80%) and Taiwan (20%).
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million for the quarter under review when compared to RM34.1 million in 2Q2008, a decrease in turnover of RM6.0 million (17.6%) due to soft market conditions, particularly in the primary export markets.
It recorded pre-tax profit of RM0.4 million when compared to pre-tax profit of RM0.5 million registered in 2Q2008. The lower pre-tax profit is mainly attributed to stiff competition affecting the demand of the Group's foil division.
On a year-to date basis (YTD), the division registered a turnover of RM53.1 million as compared to RM68.0 million in the previous corresponding period. The division’s YTD pre-tax profit also dropped by RM1.0 million to RM0.3 million as compared to the corresponding period last year (RM1.3 million). The decreases in both YTD turnover and pre-tax profit were mainly due to soft export market conditions explained above.
Material Changes for the Quarter Reported on as Compared with the Preceding Quarter
Quarter 2, 2009
Timber
The Group’s timber division registered a turnover of RM104.3 million, an increase of RM18.1 million as compared to 1Q2009. Its pre-tax loss decreased from RM11.9 million to RM3.7 million, an improvement of RM8.2 million (68.9%). This is mainly due to the slight improvement in the log division.
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million, an increase of RM3.1 million as compared to 1Q2009. It recovered from pre-tax loss of RM0.1 million to pre-tax profit of RM0.4 million, an improvement of RM0.5 million. This is mainly attributed to improvement in the division's product mix.
*
For the quarter under review, the Group’s turnover was RM133.1 million as compared to RM226.1 million in the 2Q2008, representing a decrease of RM93.0 million (41.1%). The Group recorded pre-tax loss of RM3.4 million compared to pre-tax profit of RM23.5 million registered in 2Q2008. This is mainly attributed to the timber division.
Quarter 2, 2009
Timber
For the current quarter, the Group’s timber division registered a turnover of RM104.3 million, representing decrease of 45.4% or RM86.7 million as compared with RM191.0 million in the 2Q2008. This resulted in a pre-tax loss of RM3.7 million, a decrease of 116.4% compared to 2Q2008 profit of RM22.5 million. The drop is due to the continued economic slow-down and financial crisis world-wide.
On a year-to-date (YTD) basis, the timber division registered a turnover of RM190.5 million, representing decrease of 40.8%, as compared to the previous corresponding period of RM321.7 million. This is attributed to the decrease in logs and plywood sales volume of 24.2% and 47.7% respectively. Consequently, the division recorded a net loss of RM15.6 million, a substantial decrease of 160.2% or RM41.5 million when compared to RM25.9 million pre-tax profit registered in the previous corresponding period.
On a year-on-year (YOY) basis, average round log prices dropped by approximately 9.8% compared to prices registered in 2Q2008, whilst sales volume dropped by 36.8% compared to 2Q2008. On a YTD basis, average round log prices also dropped compared to the corresponding period, that is by approximately 9.1%. The Group’s key export markets for round logs is India (66%), Vietnam (10%), Japan (5%), China (5%) and the remaining 14% exported to Asian countries including Taiwan, South Korea and Hong Kong.
As for the Group’s plywood division, sales volume for the quarter in review decreased 42.1% as compared with 2Q2008, whilst, average selling prices decreased by 18.5% as compared to 2Q2008. On a YTD basis, average plywood prices were lower by 8.6% whilst volume decreased 47.7%. The Group’s key plywood markets for the quarter in review were Japan (80%) and Taiwan (20%).
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million for the quarter under review when compared to RM34.1 million in 2Q2008, a decrease in turnover of RM6.0 million (17.6%) due to soft market conditions, particularly in the primary export markets.
It recorded pre-tax profit of RM0.4 million when compared to pre-tax profit of RM0.5 million registered in 2Q2008. The lower pre-tax profit is mainly attributed to stiff competition affecting the demand of the Group's foil division.
On a year-to date basis (YTD), the division registered a turnover of RM53.1 million as compared to RM68.0 million in the previous corresponding period. The division’s YTD pre-tax profit also dropped by RM1.0 million to RM0.3 million as compared to the corresponding period last year (RM1.3 million). The decreases in both YTD turnover and pre-tax profit were mainly due to soft export market conditions explained above.
Material Changes for the Quarter Reported on as Compared with the Preceding Quarter
Quarter 2, 2009
Timber
The Group’s timber division registered a turnover of RM104.3 million, an increase of RM18.1 million as compared to 1Q2009. Its pre-tax loss decreased from RM11.9 million to RM3.7 million, an improvement of RM8.2 million (68.9%). This is mainly due to the slight improvement in the log division.
Non-Timber Manufacturing & Trading
The non-timber manufacturing and trading division recorded a turnover of RM28.1 million, an increase of RM3.1 million as compared to 1Q2009. It recovered from pre-tax loss of RM0.1 million to pre-tax profit of RM0.4 million, an improvement of RM0.5 million. This is mainly attributed to improvement in the division's product mix.
*
MBMR ~ highlight : 09 Q2
6 Aug 09
MBMR Board of Directors
QUARTERLY ANNOUNCEMENT
for the second quarter ended 30/06/2009
Highlights
• Revenues and profits were lower during the quarter compared with last year
but quarter-on-quarter performance improved.
• The high Japanese Yen continue to have a negative impact on operating
margins compared to last year but the pressure on a quarter-to-quarter basis
has eased.
• Volume sales recovered during the quarter with orders showing encouraging
prospects for the coming months.
• The manufacturing operations enjoyed strong deliveries as the major customers
increase production in line with improved market conditions. Price adjustments
and lower material costs helped with some margin recovery.
• Associate contribution was lower due to the high Japanese Yen and reduced
volumes but profits were substantially higher than that for the 1st quarter.
• Dividend of 3.0 sen declared against 6.0 sen (excluding special dividend) last
year.
Overview
The Malaysian motor total industry volume (TIV) of sales by registration declined in the second quarter of 2009 by 10.0% compared against the same period of 2008, but improved by 11.6%
over the preceding quarter.
Overall, the TIV for the first 6 months' sales by registration declined 9.7% compared to the
same period of 2008.
Group Financial Performance
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% toRM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June 2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
Group Business Performance
Performance of sales by operations
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% to RM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09 million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June
2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
*
MBMR Board of Directors
QUARTERLY ANNOUNCEMENT
for the second quarter ended 30/06/2009
Highlights
• Revenues and profits were lower during the quarter compared with last year
but quarter-on-quarter performance improved.
• The high Japanese Yen continue to have a negative impact on operating
margins compared to last year but the pressure on a quarter-to-quarter basis
has eased.
• Volume sales recovered during the quarter with orders showing encouraging
prospects for the coming months.
• The manufacturing operations enjoyed strong deliveries as the major customers
increase production in line with improved market conditions. Price adjustments
and lower material costs helped with some margin recovery.
• Associate contribution was lower due to the high Japanese Yen and reduced
volumes but profits were substantially higher than that for the 1st quarter.
• Dividend of 3.0 sen declared against 6.0 sen (excluding special dividend) last
year.
Overview
The Malaysian motor total industry volume (TIV) of sales by registration declined in the second quarter of 2009 by 10.0% compared against the same period of 2008, but improved by 11.6%
over the preceding quarter.
Overall, the TIV for the first 6 months' sales by registration declined 9.7% compared to the
same period of 2008.
Group Financial Performance
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% toRM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June 2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
Group Business Performance
Performance of sales by operations
Group revenue declined by 11.1% to RM272.9 million.
Operating profit declined by 45.3% to RM9.99 million,
whilst share of results of associated companies declined by 40.0% to RM11.09 million.
Net profit attributable to equity holders declined by 45.7% to RM13.9 million.
The group's net cash position (after total borrowings) fell to RM70.9 million as at 30 June 2009
compared with RM111.9 million as at 30 June 2008.
Group revenue improved by 7.9%.
Similarly, both operating profit and share of associated companies improved by 65.7% and 81.4% respectively.
Net profit attributable to equity holdersimproved by 49.0%.
The group’s net cash position (after total borrowings) improved to RM70.9 million as at 30 June
2009 compared with RM54.7 million as at the end of 31 March 2009.
Net assets per share improved to RM3.54 as at the end of June 2009 from RM3.51 as at
preceding financial year end.
*
Auto Sales ~ July 09 : 51,928
KUALA LUMPUR, Aug 21 (Bernama) --
Total vehicle sales in July rose by 14.7 per cent to 51,928 units as compared with June
but year to-date market continues to register 8.71 per cent contraction.
In July last year, total vehicle sales was 53,984 units.
Sales up to July 2009 was 303,012 units versus 331,957 units sold in the first seven months of 2008, said Malaysian Automotive Association (MAA).
Of the total July sales, 47,126 units were passenger vehicles and the remaining 4,802 units were commercial vehicles, said MAA in a statement Friday.
Production in July also dropped by 8.65 per cent to 47,073 units from 51,531 units in July 2008 while year to-date production only declined by 12.02 per cent to 276,915 units from 314,753 units last year.
Of the total vehicles produced in July 2009, 43,238 units were passenger vehicles while the remaining 3,835 units were commercial vehicles.
MAA said sales volume for August 2009 is expected to be maintained amid positive consumer sentiment and festive offers in conjunction with Hari Raya.
-- BERNAMA
*
Total vehicle sales in July rose by 14.7 per cent to 51,928 units as compared with June
but year to-date market continues to register 8.71 per cent contraction.
In July last year, total vehicle sales was 53,984 units.
Sales up to July 2009 was 303,012 units versus 331,957 units sold in the first seven months of 2008, said Malaysian Automotive Association (MAA).
Of the total July sales, 47,126 units were passenger vehicles and the remaining 4,802 units were commercial vehicles, said MAA in a statement Friday.
Production in July also dropped by 8.65 per cent to 47,073 units from 51,531 units in July 2008 while year to-date production only declined by 12.02 per cent to 276,915 units from 314,753 units last year.
Of the total vehicles produced in July 2009, 43,238 units were passenger vehicles while the remaining 3,835 units were commercial vehicles.
MAA said sales volume for August 2009 is expected to be maintained amid positive consumer sentiment and festive offers in conjunction with Hari Raya.
-- BERNAMA
*
Saturday, September 5, 2009
Ingress sees drop in Q2 net profit
Saturday September 5, 2009
Ingress sees drop in Q2 net profit
PETALING JAYA: Ingress Corp Bhd reported a 40% drop in net profit to RM2.95mil in the second quarter ended July 31, despite its revenue growing to RM177.7mil against RM155.54mil a year ago.
The group’s automotive division posted higher revenue of RM157mil during the period, but recorded lower profits. The company did not elaborate on why its operating margin had contracted during the quarter compared with the previous corresponding period.
Meanwhile, its power engineering and project (PEP) division made a slight loss before tax of RM0.5mil.
Ingress said it expected revenue from its automotive parts division would continue to rise, while sales volume from its premium car dealership was also projected to grow.
However, its overseas operations in Thailand and Indonesia may see lower sales.
“For PEP division, new awards are expected to materialise,” the company told Bursa Malaysia yesterday.
*
Ingress sees drop in Q2 net profit
PETALING JAYA: Ingress Corp Bhd reported a 40% drop in net profit to RM2.95mil in the second quarter ended July 31, despite its revenue growing to RM177.7mil against RM155.54mil a year ago.
The group’s automotive division posted higher revenue of RM157mil during the period, but recorded lower profits. The company did not elaborate on why its operating margin had contracted during the quarter compared with the previous corresponding period.
Meanwhile, its power engineering and project (PEP) division made a slight loss before tax of RM0.5mil.
Ingress said it expected revenue from its automotive parts division would continue to rise, while sales volume from its premium car dealership was also projected to grow.
However, its overseas operations in Thailand and Indonesia may see lower sales.
“For PEP division, new awards are expected to materialise,” the company told Bursa Malaysia yesterday.
*
US Unemployment rate ~ Aug 09 : 9.7%
Published: Saturday September 5, 2009 MYT 11:39:00 AM
US unemployment rate at highest in 26 years
WASHINGTON: The unemployment rate jumped almost half a point to 9.7 percent in August, the highest since 1983, reflecting a poor job market that will make it hard for the U.S. economy to begin a sustained recovery.
While the jobless rate rose more than expected, the economy shed a net total of 216,000 jobs, less than July's revised 276,000 and the fewest monthly losses in a year, according to Labor Department data released Friday.
"It's good to see the rate of job losses slow down," said Nigel Gault, chief U.S. economist at IHS Global Insight.But "we're still on track here to hit 10 percent (unemployment) before we're done."
The rise in the jobless rate was largely due to the government finding that the number of unemployed Americans jumped by nearly 500,000 to 14.9 million, while 73,000 people joined the civilian labor force.Those figures are from a different survey than the report on total job cuts.
The civilian labor force usually grows as a recession winds down and optimism about finding work grows. But as long as Americans remain anxious about their jobs, consumer spending isn't expected to rise enough to power a rebound. "There isn't the underlying fuel there for strong consumer spending growth," Gault said.
Instead, most of the current rebound in the economy stems from auto companies and other manufacturers restocking inventories, which have plummeted as factories and retailers have sought to bring goods more in line with reduced sales. Few economists think that can provide the basis for a sustainable recovery.
Gault forecasts the economy will grow at a 3.7 percent clip in the current July-September quarter, but expects that to fall to 2.4 percent by the fourth quarter and 2 percent in the first quarter next year. Analysts expect businesses will be reluctant to hire until they are convinced the economy is on a firm path to recovery.
Many private economists, and the Federal Reserve, expect the unemployment rate to top 10 percent by the end of this year. If laid-off workers who have settled for part-time work or have given up looking for new jobs are included, the so-called underemployment rate reached 16.8 percent, the highest on records dating from 1994. That rate rose because the number of workers settling for part-time hours, either because their employer cut their work week or because that's all they could find, increased by about 300,000. But earnings rose and the number of hours worked stayed above a recent record-low. Average hourly wages increased to $18.65 from $18.59, the department reported. Average weekly earnings increased to $617.32.
The number of weekly hours worked remained at 33.1, above the low of 33 reached in June.
That figure is important because economists expect companies will add more hours for current workers before they hire new ones.
The recession has eliminated a net total of 6.9 million jobs since it began in December 2007. Job cuts last month remained widespread across many sectors.
The construction industry lost 65,000 jobs, which caused some economists to note that the Obama administration's $787 billion stimulus package hasn't yet stemmed layoffs in that industry. "It doesn't look like a whole lot of those 'shovel ready' projects have been started," Joel Naroff, president of Naroff Economic Advisors, wrote in a note to clients.
Factories cut 63,000 jobs, while retailers pared 9,600 positions.
The financial sector eliminated 28,000 jobs, while professional and business services dropped 22,000.
Even the government lost 18,000 jobs, as the U.S. Postal Service cut 8,500 positions, and state and local governments laid off teachers and other school workers.
Health care and educational services was the only bright spot, adding 52,000 workers. And the pace of layoffs is slowing.
Job losses averaged 691,000 in the first quarter and fell to an average of 428,000 in the April-June period.
Other economic data released this week has been positive. The Institute for Supply Management, a trade group, said Tuesday that the manufacturing sector grew in August for the first time in 19 months.
On Thursday, the ISM said its service sector index rose to 48.4 last month, the highest level in nearly a year. Home sales, meanwhile, have increased for several months and prices are stabilizing. Federal Reserve policymakers said in minutes from an August meeting that they expect the economy to recover in the second half of this year.
But labor market conditions are still "poor," the Fed minutes released Wednesday said, and many companies are likely to be "cautious in hiring" even as the economy picks up.
Some economists credit the stimulus package of tax cuts and spending increases, along with the Cash for Clunkers program, with contributing to a recovery.
But they worry about what will happen when the impact of the stimulus efforts fades next year.
Administration officials argue the stimulus has already saved about 135,000 jobs.
Labor Secretary Hilda Solis said Friday that funds are still being injected into the economy and will continue to spur recovery.
"The recession has done more damage than could ever be fixed in half a year," Solis said.
Vice President Joe Biden defended the stimulus package Thursday against Republican critics who say it is too costly.
"The recovery act has played a significant role in changing the trajectory of our economy, and changing the conversation in this country," Biden said.
"Instead of talking about the beginning of a depression, we are talking about the end of a recession."
Republicans criticized Biden's speech.
"The Democrats' rhetoric on their economic experiment doesn't match with the reality of millions of Americans remaining unemployed," said Republican Party chief Michael Steele.
"The stimulus was an economic experiment that failed Americans."
More job cuts were announced this week. Washington-based manufacturer Danaher Corp. said it will lay off about 3,300 of its roughly 50,000 employees, an increase from the 1,700 cuts it announced in the spring.
American Airlines said it is cutting 921 flight attendant jobs as it deals with an ongoing downturn in traffic and lower revenue. - AP
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Higher prices likely for steel and iron-based products
Saturday September 5, 2009
Higher prices likely for steel and iron-based products
By STEPHEN THEN
MIRI: Products that use steel and iron as raw materials may see an increase in price from mid-October, according to the International Trade and Industry Ministry.
Starting Oct 13, the Government will implement the mandatory screening on imported iron and steel items.
Deputy Minister Datuk Jacob Dungau Sagan said these overhead (screening) costs might eventually end up being added onto the costs of the end-products, and consumers might have to bear the cost.
“The mandatory screening will be carried out at all major ports in the country, like Port Klang, Johor Port, Kuching Port and Kota Kinabalu Port.
“This screening is vital as it will ensure that all the steel and iron products are of high standard,” he told a press conference yesterday.
He said Sirim Bhd would charge RM2,000 for every 100 tonnes screened.
Asked if the action meant Malaysia suspected that certain importers of iron and steel had been bringing in sub-standard quality raw materials, Sagan said that was a possibility as it had happened before.
Malaysia imports substantial amount of steel and iron raw materials, which are vital for the construction industry, from South Korea, Japan, Taiwan and China.
*
Higher prices likely for steel and iron-based products
By STEPHEN THEN
MIRI: Products that use steel and iron as raw materials may see an increase in price from mid-October, according to the International Trade and Industry Ministry.
Starting Oct 13, the Government will implement the mandatory screening on imported iron and steel items.
Deputy Minister Datuk Jacob Dungau Sagan said these overhead (screening) costs might eventually end up being added onto the costs of the end-products, and consumers might have to bear the cost.
“The mandatory screening will be carried out at all major ports in the country, like Port Klang, Johor Port, Kuching Port and Kota Kinabalu Port.
“This screening is vital as it will ensure that all the steel and iron products are of high standard,” he told a press conference yesterday.
He said Sirim Bhd would charge RM2,000 for every 100 tonnes screened.
Asked if the action meant Malaysia suspected that certain importers of iron and steel had been bringing in sub-standard quality raw materials, Sagan said that was a possibility as it had happened before.
Malaysia imports substantial amount of steel and iron raw materials, which are vital for the construction industry, from South Korea, Japan, Taiwan and China.
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CIMB lead arranger for Bakun's RM 10b bonds
Saturday September 5, 2009
CIMB lead arranger for Bakun’s RM10b bonds
PETALING JAYA: CIMB Bhd is the lead arranger for the RM10bil bond issue, to be raised on a staggered basis over eight years, for the consortium building the Bakun transmission cable project.
“I can confirm that Tenaga and the consortium members – Sarawak Energy Bhd and the Finance Ministry – will raise about RM10bil,” Tenaga Nasional Bhd (TNB) CEO Datuk Seri Che Khalib Mohamad Noh told Reuters yesterday.
StarBiz reported yesterday that the RM10bil would represent the debt portion while another RM2.5bil would make up the equity portion for the financing that would be raised on a project finance basis. The issuance of the first tranche would commence early next year and the jobs for the 1,000km high voltage direct transmission line and 680km undersea cable were likely to be tendered in the first quarter of next year. The Bakun Dam has a capacity of 2,400 megawatts (MW). By 2015, the first line is expected to be ready for transmission of 800-1,000MW of hydroelectricity to the peninsula. This will be followed by another 800-1,000MW by 2017 when the second line is completed. Over the long term, Sarawak plans to transmit more electricity to the peninsula.
On May 7 last year, TNB told Bursa Malaysia it had signed a heads of agreement with Sarawak Energy whereby the latter would develop electricity generation capacity to supply 3,000MW to TNB from 2017 to 2020 and a further 5,000MW from 2021 to 2030.This will be based on a schedule to be mutually agreed by both parties. The two parties also agreed to jointly collaborate and undertake feasibility studies to determine the inter-connection framework for the long-term power transmission from Sarawak to the peninsula.
CIMB lead arranger for Bakun’s RM10b bonds
PETALING JAYA: CIMB Bhd is the lead arranger for the RM10bil bond issue, to be raised on a staggered basis over eight years, for the consortium building the Bakun transmission cable project.
“I can confirm that Tenaga and the consortium members – Sarawak Energy Bhd and the Finance Ministry – will raise about RM10bil,” Tenaga Nasional Bhd (TNB) CEO Datuk Seri Che Khalib Mohamad Noh told Reuters yesterday.
StarBiz reported yesterday that the RM10bil would represent the debt portion while another RM2.5bil would make up the equity portion for the financing that would be raised on a project finance basis. The issuance of the first tranche would commence early next year and the jobs for the 1,000km high voltage direct transmission line and 680km undersea cable were likely to be tendered in the first quarter of next year. The Bakun Dam has a capacity of 2,400 megawatts (MW). By 2015, the first line is expected to be ready for transmission of 800-1,000MW of hydroelectricity to the peninsula. This will be followed by another 800-1,000MW by 2017 when the second line is completed. Over the long term, Sarawak plans to transmit more electricity to the peninsula.
On May 7 last year, TNB told Bursa Malaysia it had signed a heads of agreement with Sarawak Energy whereby the latter would develop electricity generation capacity to supply 3,000MW to TNB from 2017 to 2020 and a further 5,000MW from 2021 to 2030.This will be based on a schedule to be mutually agreed by both parties. The two parties also agreed to jointly collaborate and undertake feasibility studies to determine the inter-connection framework for the long-term power transmission from Sarawak to the peninsula.
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