JDS.L Regulatory News (JDS)

29 Nov 2006 09:32

Jardine Strategic Hldgs Ld29 November 2006 To: Business Editor 29th November 2006 For immediate release Jardine Cycle & Carriage LimitedThird Quarter 2006 Financial Statements and Dividend Announcement The following announcement was issued today by the Company's 64%-ownedsubsidiary, Jardine Cycle & Carriage Limited. For further information, please contact: Jardine Matheson LimitedNeil M McNamara (852) 2843 8227 Matheson & Co LimitedMartin Henderson (44) 207 816 8135 GolinHarrisKennes Young (852) 2501 7987 Weber Shandwick Square MileRichard Hews/Helen Thomas (44) 20 7067 0700 29 November 2006 JARDINE CYCLE & CARRIAGE LIMITEDTHIRD QUARTER 2006 FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT Highlights • Underlying earnings per share 30% lower at USc47.47 • The decline in Astra's motor vehicle and motorcycle sales eases • Astra's palm oil operations continue to perform well • Good result from Singapore motors "The ongoing reductions in interest rates in Indonesia have led to a modestrecovery in consumer demand and it is expected that this trend will continue forthe remainder of the year." Anthony Nightingale, Chairman29 November 2006 Group Results________________________________________________________________________________ Nine months ended 30 September________________________________________________________________________________ 2006 2005 Change 2006 US$m US$m % S$m________________________________________________________________________________Revenue 5,410 1,388 290 8,630Underlying profit attributable to shareholders 160 227 -29 256Profit attributable to shareholders 163 230 -29 260________________________________________________________________________________ USc USc Sc________________________________________________________________________________Underlying earnings* per share 47.47 67.78 -30 75.73Earnings per share 48.24 68.59 -30 76.98Interim dividend per share (gross) 3.00 3.00 - 4.75________________________________________________________________________________ At Restated Change At 30.9.06 31.12.05 % 30.9.06 US$m US$m S$m________________________________________________________________________________Shareholders' funds+ 1,784 1,544 16 2,831________________________________________________________________________________ US$ US$ S$________________________________________________________________________________Net asset value per share+ 5.22 4.59 14 8.28________________________________________________________________________________ The exchange rate of US$1=S$1.5874 (31.12.2005: US$1=S$1.665) was used fortranslating assets and liabilities at the balance sheet date and US$1=S$1.5953(30.9.2005: US$1=S$1.6607) was used for translating the results for the period. The financial results for the nine months ended 30 September 2006 have beenprepared in accordance with the International Financial Reporting Standards("IFRS"). These results have not been audited or reviewed by the Auditors. Astra became a subsidiary on 1 August 2005, and its results have beenconsolidated since then. \* The basis for calculating underlying earnings is set out in Note 6 of thisreport. +The prior year adjustment is set out in Note 1 of this report. CHAIRMAN'S STATEMENT Overview The Group continued to face difficult trading conditions in Indonesia in thethird quarter, although recent reductions in interest rates have led to a modestimprovement in demand. Performance The Group's revenue for the first nine months of 2006 was US$5.4 billion, up290% due to the consolidation of Astra which became a subsidiary on 1 August2005. The Group's underlying profit after tax and minority interests for theperiod was down 29% at US$160 million, while underlying earnings per share were30% lower at USc47.47. The decrease arose primarily in Indonesia where bothAstra and Tunas Ridean were impacted by weak market conditions. Afterexceptional gains of US$3 million from asset sales, net profit was 29% lower atUS$163 million. The Group's consolidated net debt (excluding borrowings within Astra's financialservices activities) rose US$38 million over the nine months to reach US$648million as at 30 September 2006. The increase reflected Astra's additionalinvestment in Bank Permata and capital expenditure by its heavy equipmentoperations. This was partly offset by the exclusion of the net debt within MCLLand Limited following the distribution in specie of the Group's shareholding inJanuary, asset sales by Cycle & Carriage Bintang, and lower net debt ofSingapore motors group and corporate office. Dividends The Board does not propose to declare a dividend for the three months ended 30September 2006 (30 September 2005: Nil). Group Review Astra Astra's contribution to the Group's underlying profit for the nine monthsdeclined by 24% to US$160 million. This compares with a 32% decline in the firsthalf and reflects some improvement in consumer confidence in Indonesia. Weak demand in the first nine months saw the market for motor vehicles inIndonesia fall by 47% to 233,700 units. Astra's motor vehicle sales declined bya lower 38% to 127,400 units, resulting in an improved market share of 55%.During the period, Astra successfully launched one new and four revampedpassenger car models. The overall market for motorcycles declined 20% to 3.1 million units in thefirst nine months, although an improvement over the 26% decline recorded at thehalf year as demand began to return. Honda motorcycle sales were 20% lower at1.6 million units, but Astra's market share recovered to 52% during the thirdquarter. Honda broadened its product range during the period with the launch ofthree new models. Within Astra's non-automotive operations, net income from agribusiness roseduring the period. PT Astra Agro Lestari Tbk achieved an 18% increase in crudepalm oil sales and prices improved. The company is actively seeking land for newoil palm and rubber plantations and is continuing to monitor developments in thebio-diesel market. Astra's net income from heavy equipment also increased. PT United Tractors Tbk'scontract mining subsidiary, PT Pamapersada Nusantara continued to perform wellwith increases in overburden removal and coal extracted of 23% and 20%,respectively. Sales of Komatsu heavy equipment were down 16% at 1,650 units dueto lower demand in the mining sector, but its market share increased from 46% to48%. Astra's infrastructure investments in a toll road and water treatment facilityare performing satisfactorily, and further infrastructure investments are underconsideration. Motor The underlying profit of US$20 million from the Group's motor operations was 12%down as a strong performance in Singapore was more than offset by the declinesin the earnings from PT Tunas Ridean and Cycle & Carriage Bintang and thecessation of contribution from Australia. Earnings in Singapore rose by 33% to US$18.6 million. Passenger car sales forMitsubishi grew by 41% to 6,490 units, while Mercedes-Benz were up 8% at 2,210units. Kia sales remained steady at some 4,070 units. The Group commenced thedistribution of Citroen in Singapore from 1 October 2006. In Malaysia, the new National Automotive Policy continued to affect the market.Cycle & Carriage Bintang managed to maintain sales of Mercedes-Benz products,but Mazda and Peugeot were adversely impacted. Overall, its underlying profitcontribution declined by 69% to US$0.8 million. On 27 October 2006 the companydistributed the proceeds of property disposals by way of a special dividend, ofwhich the Company's share was US$24 million. The weak consumer demand in Indonesia and increased doubtful debts saw thecontribution from PT Tunas Ridean reduce to US$1.2 million, compared with US$5.6million for the same period last year. Property There was no contribution from property for the period following thedistribution in specie of the Group's 65.6% interest in MCL Land in January2006. This compares with an underlying profit contribution of US$10.4 million inthe first nine months of 2005. Prospects The ongoing reductions in interest rates in Indonesia have led to a modestrecovery in consumer demand and it is expected that this trend will continue forthe remainder of the year. Anthony NightingaleChairman29 November 2006 Statement pursuant to Rule 705(4) of the Listing Manual The directors confirm that, to the best of their knowledge, nothing has come tothe attention of the Board of Directors which may render the accompanyingunaudited interim financial results for the nine months ended 30 September 2006to be false or misleading in any material respect. On behalf of the Directors Anthony NightingaleDirector Hassan AbasDirector 29 November 2006 ____________________________________________________________________________________Jardine Cycle & Carriage Limited Consolidated Profit and Loss Account____________________________________________________________________________________ Three months ended Nine months ended 30.9.06 30.9.05 Change 30.9.06 30.9.05 Change Note US$m US$m % US$m US$m % Continuing operationsRevenue 1,871.4 844.4 122 5,409.9 1,386.6 290Cost of sales (1,479.6) (686.0) 116 (4,289.3) (1,180.6) 263____________________________________________________________________________________Group profit 391.8 158.4 147 1,120.6 206.0 444 Other operating income 31.2 9.1 243 120.1 23.8 405Selling and distribution expenses (150.9) (36.2) 317 (383.3) (65.8) 483Administrative expenses (89.3) (57.5) 55 (315.6) (68.6) 360Other operating expenses (28.3) (17.0) 66 (86.4) (18.5) 367____________________________________________________________________________________Operating profit 154.5 56.8 172 455.4 76.9 492 Financing charges (26.0) (6.4) 306 (67.0) (12.0) 458Share of associates' and joint ventures' results 56.9 64.0 -11 129.1 217.1 -41____________________________________________________________________________________Profit before tax 3 185.4 114.4 62 517.5 282.0 84Tax 4 (34.6) (22.8) 52 (120.0) (29.0) 314____________________________________________________________________________________Profit after tax from continuing operations 150.8 91.6 65 397.5 253.0 57____________________________________________________________________________________ Discontinued operationsRevenue - 0.4 -100 - 1.4 -100 Profit before tax - 13.5 -100 - 14.7 -100Tax - (0.1) -100 - (0.3) -100____________________________________________________________________________________Profit after tax from discontinued operations 13 - 13.4 -100 - 14.4 -100____________________________________________________________________________________Profit attributable to:Shareholders 64.4 70.7 -9 163.0 229.5 -29Minority interests 86.4 34.3 152 234.5 37.9 519____________________________________________________________________________________ 150.8 105.0 44 397.5 267.4 49____________________________________________________________________________________ USc USc USc USc____________________________________________________________________________________Earnings per share: 5 - basic 18.93 21.04 -10 48.24 68.59 -30 - fully diluted 18.92 21.01 -10 48.21 68.53 -30 Earnings per share from continuing operations: 5 - basic 18.93 18.42 3 48.24 65.78 -27 - fully diluted 18.92 18.39 3 48.21 65.72 -27____________________________________________________________________________________ ___________________________________________________________________Jardine Cycle & Carriage LimitedConsolidated Balance Sheet___________________________________________________________________ At Restated Note 30.9.06 31.12.05 US$m US$mNon-current assetsIntangible assets 446.2 422.0Leasehold land use rights 408.6 399.4Property, plant and equipment 1,184.1 1,037.5Investment properties 27.0 51.1Plantations 421.5 383.1Interests in associates and joint ventures 1,330.9 1,093.7Non-current investments 50.6 43.4Debtors 995.2 1,218.0Deferred tax assets 65.9 51.7Other non-current assets 75.0 71.1___________________________________________________________________ 5,005.0 4,771.0___________________________________________________________________Current assetsDevelopment properties for sale - 415.9Stocks 595.7 678.2Debtors 1,922.5 2,056.3Current tax assets 93.4 45.1Bank balances and other liquid funds - non-finance companies 349.1 317.2 - finance companies 202.3 186.6 551.4 503.8___________________________________________________________________ 3,163.0 3,699.3___________________________________________________________________Total assets 8,168.0 8,470.3___________________________________________________________________Non-current liabilitiesProvisions 13.1 10.6Long-term borrowings 7 - non-finance companies 389.9 394.6 - finance companies 792.8 1,005.3 1,182.7 1,399.9Deferred tax liabilities 271.7 270.6Other non-current liabilities 182.8 166.4___________________________________________________________________ 1,650.3 1,847.5___________________________________________________________________Current liabilitiesProvisions 25.7 38.9Current borrowings 7 - non-finance companies 610.9 542.0 - finance companies 972.1 1,168.9 1,583.0 1,710.9Current tax liabilities 34.9 74.0Dividend payable 8.2 250.6Creditors 1,041.3 1,017.1___________________________________________________________________ 2,693.1 3,091.5___________________________________________________________________Total liabilities 4,343.4 4,939.0___________________________________________________________________Net assets 3,824.6 3,531.3___________________________________________________________________EquityShare capital 8 489.9 185.4Share premium 8 - 274.0Fair value and other reserves 9 313.1 307.3Revenue reserve 10 980.7 777.4___________________________________________________________________Shareholders' funds 1,783.7 1,544.1Minority interests 11 2,040.9 1,987.2___________________________________________________________________ 3,824.6 3,531.3___________________________________________________________________Net asset value per share US$5.22 US$4.59 ___________________________________________________________________________Jardine Cycle & Carriage LimitedConsolidated Statement of Recognised Income and Expense___________________________________________________________________________ Three months ended Nine months ended 30.9.06 30.9.05 30.9.06 30.9.05 US$m US$m US$m US$m Fair value changes of available-for-sale investments, net of tax 5.7 (0.4) 11.2 (0.2) Actuarial loss on defined benefit pension plans, net of tax (3.3) (3.4) (10.3) (3.4) Surplus on revaluation of land and buildings, net of tax 1.8 131.0 1.8 130.7 Share of associates' loss on dilution of interest in investments - (0.2) - (0.2) Translation difference 25.1 (149.6) 205.6 (220.6)___________________________________________________________________________Net gain/(loss) recognised directly in equity 29.3 (22.6) 208.3 (93.7) Profit after tax 150.8 105.0 397.5 267.4___________________________________________________________________________Total recognised income and expense for the period 180.1 82.4 605.8 173.7___________________________________________________________________________Profit attributable to: Shareholders of the Company 78.3 120.4 257.5 212.6 Minority interests 101.8 (38.0) 348.3 (38.9)___________________________________________________________________________ 180.1 82.4 605.8 173.7___________________________________________________________________________ _____________________________________________________________________Jardine Cycle & Carriage LimitedCompany Balance Sheet_____________________________________________________________________ Note At At 30.9.06 31.12.05 US$m US$m Non-current assetsProperty, plant and equipment 0.7 0.9Interests in subsidiaries 1,163.9 1,358.3Interests in associates 46.8 44.6_____________________________________________________________________ 1,211.4 1,403.8_____________________________________________________________________Current assetsDebtors 44.8 19.8Bank balances and other liquid funds 0.3 0.3_____________________________________________________________________ 45.1 20.1_____________________________________________________________________ Total assets 1,256.5 1,423.9_____________________________________________________________________ Non-current liabilitiesDeferred tax liabilities 0.4 0.4_____________________________________________________________________ 0.4 0.4_____________________________________________________________________ Current liabilitiesCurrent borrowings 223.1 254.0Current tax liabilities 0.9 0.8Dividend payable 8.2 250.6Creditors 69.7 66.2_____________________________________________________________________ 301.9 571.6_____________________________________________________________________ Total liabilities 302.3 572.0_____________________________________________________________________ Net assets 954.2 851.9_____________________________________________________________________ Share capital and reserves Share capital 8 489.9 185.4Share premium 8 - 274.0Share option reserve 9 0.3 0.3Revenue reserve 10 464.0 392.2_____________________________________________________________________Shareholders' funds 954.2 851.9_____________________________________________________________________ Net asset value per share US$2.79 US$2.53_____________________________________________________________________ _____________________________________________________________________________Jardine Cycle & Carriage LimitedCompany Statement of Recognised Income and Expense_____________________________________________________________________________ Three months ended Nine months ended 30.9.06 30.9.05 30.9.06 30.9.05 US$m US$m US$m US$m Translation difference 0.9 (3.1) 41.9 (36.1)_____________________________________________________________________________Net gain/(loss) recognised directly in equity 0.9 (3.1) 41.9 (36.1) Profit after tax 19.8 48.3 78.3 136.0_____________________________________________________________________________Total recognised income and expense for the period 20.7 45.2 120.2 99.9_____________________________________________________________________________Profit attributable to: Shareholders of the Company 20.7 45.2 120.2 99.9_____________________________________________________________________________ _____________________________________________________________________________Jardine Cycle & Carriage LimitedConsolidated Statement of Cash Flows_____________________________________________________________________________ Three months ended Nine months ended 30.9.06 30.9.05 30.9.06 30.9.05 Note US$m US$m US$m US$m Cash flows from operating activities 12 402.7 150.6 1,217.2 70.6 Cash generated from operations Interest paid (19.8) (4.0) (61.2) (9.7)Interest received 10.3 2.5 29.4 5.0Other finance costs paid (0.7) (0.1) (0.8) (0.5)Income tax paid (65.9) (29.0) (221.9) (37.4) (76.1) (30.6) (254.5) (42.6)_____________________________________________________________________________Net cash flows from operating activities 326.6 120.0 962.7 28.0 Cash flows from investing activities Sale of leasehold land use rights 0.2 - 8.2 -Sale of property, plant and equipment 11.7 1.7 35.7 3.4Sale of investment properties - 1.6 - 47.0Sale of subsidiaries, net of cash disposed (0.9) - (28.2) -Sale of shares in associates - (0.2) - 3.0Purchase of property, plant and equipment (74.8) (37.9) (298.4) (46.1)Purchase of leasehold land use rights (2.1) (0.4) (5.9) (0.7)Purchase of plantations (4.9) (0.7) (13.1) (0.7)Acquisition of Astra, net of cash acquired* - 412.7 - 288.4Acquisition of other subsidiaries, net of cash acquired (3.3) - (6.8) (7.2)Purchase of investment property - - - (8.2)Purchase of shares in associates (142.6) (36.0) (174.3) (36.0)Purchase of other investments (8.7) - (8.7) -Capital repayment of other investments 1.6 - 2.1 -Dividends received from associates (net) 1.4 58.1 116.9 68.2 Net cash flows from/(used in) investing activities (222.4) 398.9 (372.5) 311.1 Cash flows from financing activities Proceeds from issue of shares - - 0.1 1.1Drawdown of loans 610.4 115.3 1,843.7 595.6Repayment of loans (688.4) (210.9) (2,280.7) (551.3)Investment by minority interests - - 9.4 -Dividends paid to minority interests (102.6) (0.2) (138.2) (45.1)Dividends paid (net) (9.9) (9.7) (9.9) (9.7) Net cash flows used in financing activities (190.5) (105.5) (575.6) (9.4)_____________________________________________________________________________Net change in cash and cash equivalents (86.3) 413.4 14.6 329.7Cash and cash equivalents at the beginning of the period 607.3 90.8 491.0 177.0Effect of exchange rate changes 7.0 (22.4) 22.4 (24.9)_____________________________________________________________________________Cash and cash equivalents at the end of the period 528.0 481.8 528.0 481.8_____________________________________________________________________________ * For the nine months ended 30 September 2005, the cash inflow of US$288.4million consisted of cash acquired of US$422.8 million offset by theconsideration paid of US$134.4 million arising from the purchase of additionalinterest in Astra. For the three months ended 30 September 2005, the cash inflow of US$412.7million consisted of cash acquired of US$422.8 million offset by theconsideration paid of US$10.1m arising from the purchase of additional interestin Astra. ________________________________________________________________________________Jardine Cycle & Carriage LimitedNotes________________________________________________________________________________ 1 Basis of preparation The financial statements are consistent with those set out in the 2005 auditedaccounts which have been prepared in accordance with International FinancialReporting Standards ("IFRS"). There have been no changes to the accountingpolicies described in the 2005 audited accounts except for the adoption of theamendments and interpretation shown below: IAS 19 (amended 2005) Employee BenefitsIAS 39 (amended 2005) Cash Flow Hedge Accounting of Forecast Intragroup TransactionsIAS 39 (amended 2005) The Fair Value OptionIAS 39 and IFRS 4 (amended 2005) Financial Guarantee ContractsIFRIC 4 Determining whether an Arrangement contains a Lease The adoption of these amendments and interpretation did not have a materialimpact on the results of the Group. The preparation of financial statements in conformity with IFRS requires the useof certain critical accounting estimates. The Group makes estimates andassumptions concerning the future. It also requires management to exercise itsjudgment in the process of applying the Group's accounting polices. Estimatesand judgments are continually evaluated and are based on historical experienceand other factors, including expectations of future events that are believed tobe reasonable under the circumstances. The resulting accounting estimates will,by definition, seldom equal the related actual results. With Astra becoming a subsidiary in August 2005, the initial accounting for thebusiness combination under IFRS 3 Business Combinations involved identifying anddetermining the fair values to be assigned to Astra's identifiable assets,liabilities and contingent liabilities and the cost of the combination. Prior year adjustment The final adjustments to the initial accounting for the business combinationhave resulted in changes to the Group's balance sheet as at 1 January 2006 and31 December 2005. The impact of the prior year adjustment is as follows: US$m Decrease in intangible assets (60.3)Decrease in interests in associates and joint ventures (60.0)Decrease in deferred tax liabilities 21.8Decrease in minority interests 63.4___________________________________________________________________________Decrease in shareholders' funds (35.1)___________________________________________________________________________ UScDecrease in net asset value per share (0.10)___________________________________________________________________________ 2 Reconciliation between IAS 17 and IAS 40 and FRS 25 A reconciliation of the differences between IAS 17 Leases ("IAS 17") and IAS 40Investment Properties ("IAS 40") and Singapore's FRS 25 Accounting forInvestments ("FRS 25") is to be disclosed as required by the Accounting andCorporate Regulatory Authority in approving the Company's application for theadoption of International Financial Reporting Standards. The differences between IAS 17 and IAS 40 and FRS 25 arise from the accountingtreatment of valuation changes in investment properties. Under IAS 40,investment properties are carried at fair value and changes in fair values arerecognised directly in the consolidated profit and loss account. This contrastswith FRS 25 where the investment properties are carried at revalued amounts. Thenet surplus or deficit on revaluation is first taken to revaluation reserveunless the revaluation surplus is insufficient to cover the deficit, in whichcase, the amount by which the deficit exceeds the available surplus is chargedto the consolidated profit and loss account. The surplus on revaluation notutilised at the date of the sale of investment properties is taken to theconsolidated profit and loss account. There were no financial effects in adopting these financial standards for thenine months ended 30 September 2006. 3 Profit before tax Group Three months ended Nine months ended 30.9.06 30.9.05 Change 30.9.06 30.9.05 Change US$m US$m % US$m US$m % Profit before tax is determined after including: Interest income 10.1 3.2 216 29.6 4.9 504Interest expense (25.3) (6.4) 295 (66.6) (11.6) 474Depreciation and amortisation of property, plant and equipment and leasehold land use rights (60.1) (17.8) 238 (172.5) (22.1) 681Profit on sale of shares in a subsidiary - - - 7.2 - 100Profit on sale of property, plant and equipment 3.6 0.6 500 8.0 0.6 nmProfit on sale of leasehold land use rights 0.2 - 100 3.9 - 100Loss on sale of repossessed assets (27.3) (2.7) 911 (79.5) (2.7) nmFair value changes of forward exchange contracts 0.7 2.2 -68 (0.5) 1.7 nmImpairment of intangible assets - - - - (0.8) -100Net exchange gain/(loss) 0.2 (14.9) nm 16.4 (12.5) nmWrite-back of provision for development properties - 12.8 -100 - 12.8 -100Reversal of write-down/ (write-down) of stocks 4.0 (1.3) nm 1.1 (2.3) nmWrite-back of impairment/ (impairment) of debtors (25.5) 0.3 nm (89.2) 1.9 nmProvision for warranty and goodwill claims (2.5) (2.7) -7 (6.8) (5.4) 26Write-back of provision for closure costs - - - - 1.2 -100_________________________________________________________________________________________ nm: not meaningful 4 Tax The provision for income tax is based on the statutory tax rates of therespective countries in which the companies operate after taking into accountnon-deductible expenses and group tax relief. 5 Earnings per share Group Three months ended Nine months ended 30.9.06 30.9.05 30.9.06 30.9.05 US$m US$m US$m US$mBasic earnings per share Profit attributable to shareholders 64.4 70.7 163.0 229.5Weighted average number of ordinary shares in issue (millions) 340.2 336.1 337.9 334.6Basic earnings per share USc18.93 USc21.04 USc48.24 USc68.59_____________________________________________________________________________Profit attributable to shareholders from continuing operations 64.4 61.9 163.0 220.1Basic earnings per share from continuing operations USc18.93 USc18.42 USc48.24 USc65.78_____________________________________________________________________________Profit attributable to shareholders from discontinued operations - 8.8 - 9.4Basic earnings per share from discontinued operations USc - USc2.62 USc - USc2.81_____________________________________________________________________________ Diluted earnings per share Profit attributable to shareholders 64.4 70.7 163.0 229.5Weighted average number of ordinary shares in issue (millions) 340.2 336.1 337.9 334.5Adjustment for assumed conversion of share options (millions) 0.2 0.4 0.2 0.4_____________________________________________________________________________Weighted average number of ordinary shares for diluted earnings per share (millions) 340.4 336.5 338.1 334.9_____________________________________________________________________________ Diluted earnings per share USc18.92 USc21.01 USc48.21 USc68.53_____________________________________________________________________________ Profit attributable to shareholders from continuing operations 64.4 61.9 163.0 220.1 Diluted earnings per share from continuing operations USc18.92 USc18.39 USc48.21 USc65.72_____________________________________________________________________________Profit attributable to shareholders from discontinued operations - 8.8 - 9.4Diluted earnings per share from discontinued operations USc - USc 2.62 USc - USc2.81_____________________________________________________________________________Underlying earnings per shareUnderlying profit attributable to shareholders (Note 6) 64.4 70.8 160.4 226.8 Basic underlying earnings per share USc18.93 USc21.07 USc47.47 USc67.78_____________________________________________________________________________Diluted underlying earnings per share USc18.92 USc21.04 USc47.44 USc67.72_____________________________________________________________________________ 6 Underlying profit attributable to shareholders A reconciliation of the profit attributable to shareholders and underlyingprofit attributable to shareholders is as follows: Group Three months ended Nine months ended 30.9.06 30.9.05 30.9.06 30.9.05 US$m US$m US$m US$m Profit attributable to shareholders 64.4 70.7 163.0 229.5Less:Exceptional items Profit on sale of shares in a subsidiary - - 1.4 -Profit on sale of surplus Malaysian properties - - 1.2 -Profit on closure of Australian operations - (0.1) - 3.5Impairment of intangible assets - - - (0.8) - (0.1) 2.6 2.7______________________________________________________________________________Underlying profit attributable to shareholders 64.4 70.8 160.4 226.8______________________________________________________________________________ The underlying profit attributable to shareholders by business is shown below: Group Three months ended Nine months ended 30.9.06 30.9.05 Change 30.9.06 30.9.05 Change US$m US$m % US$m US$m % AstraMotor vehicles 12.0 18.8 -36 32.0 63.2 -49Motorcycles 22.9 25.6 -11 55.1 73.8 -25Other automotive 4.3 4.5 -4 8.1 13.2 -39________________________________________________________________________________Total automotive 39.2 48.9 -20 95.2 150.2 -37Non-automotive 28.3 16.5 72 82.0 65.7 25Corporate costs (6.3) 1.0 nm (18.5) (2.0) 825________________________________________________________________________________Trading profit 61.2 66.4 -8 158.7 213.9 -26Forex and others 0.2 (1.5) nm 1.6 (2.6) nm________________________________________________________________________________ 61.4 64.9 -5 160.3 211.3 -24________________________________________________________________________________MotorsSingapore 6.8 4.5 51 18.6 14.0 33Malaysia 0.2 1.1 -82 0.8 2.6 -69Indonesia (Tunas Ridean) 0.4 1.6 -75 1.2 5.6 -79Others - (0.9) -100 (0.2) 1.0 nm________________________________________________________________________________ 7.4 6.3 17 20.4 23.2 -12________________________________________________________________________________ Property - 9.0 -100 - 10.4 -100________________________________________________________________________________ Corporate costs and others (4.4) (3.6) 22 (12.9) (12.3) 5Withholding tax on dividends from Indonesia - (5.8) -100 (7.4) (5.8) 28________________________________________________________________________________ (4.4) (9.4) -53 (20.3) (18.1) 12________________________________________________________________________________ ________________________________________________________________________________Underlying profit attributable to shareholders 64.4 70.8 -9 160.4 226.8 -29________________________________________________________________________________ 7 Borrowings Group At At 30.9.06 31.12.05 US$m US$m Long-term borrowings:- secured 623.1 581.9- unsecured 559.6 818.0______________________________________________________________________ 1,182.7 1,399.9______________________________________________________________________ Current borrowings:- secured 511.4 472.2- unsecured 1,071.6 1,238.7______________________________________________________________________ 1,583.0 1,710.9______________________________________________________________________ ______________________________________________________________________Total borrowings 2,765.7 3,110.8______________________________________________________________________ Certain subsidiaries of the Group have pledged their assets in order to obtainbank facilities from financial institutions. The value of assets pledged wasUS$993.4 million (31.12.05: US$1,145.6 million). 8 Share capital CompanyThree months ended 30 September 2006 2005 US$m US$m Share capital:Balance at 1 July 459.5 183.8Issue of shares 30.4 1.6_____________________________________________________________________Balance at 30 September 489.9 185.4_____________________________________________________________________ Share premium:Balance at 1 July - 255.8Issue of shares - 18.1_____________________________________________________________________Balance at 30 September - 273.9_____________________________________________________________________ Nine months ended 30 September 2006 2005 US$m US$m Share capital:Balance at 1 January 185.4 183.6Issue of shares 30.5 1.8Transfer from share premium 274.0 -_____________________________________________________________________Balance at 30 September 489.9 185.4_____________________________________________________________________ Share premium:Balance at 1 January 274.0 254.9Issue of shares - 19.0Transfer to share capital (274.0) -_____________________________________________________________________Balance at 30 September - 273.9_____________________________________________________________________ Pursuant to the abolition of par or nominal value of share capital in theCompanies (Amendment) Act 2005 which took effect on 30 January 2006, the amountin share premium has become part of the Company's share capital. 9 Fair value and other reserves Group Company At At At At 30.9.06 30.9.05 30.9.06 30.9.05 US$m US$m US$m US$mComposition:Fair value reserve 6.4 3.2 - -Asset revaluation reserve 303.0 140.9 - -Share option reserve 0.3 0.4 0.3 0.4Other reserve 3.4 3.8 - -______________________________________________________________________ 313.1 148.3 0.3 0.4______________________________________________________________________ Group CompanyThree months ended 30 September 2006 2005 2006 2005 US$m US$m US$m US$mMovements: Fair value reserveBalance at 1 July 3.6 3.1 - -Fair value changes of available-for-sale investments, net of tax 2.8 0.1 - -______________________________________________________________________Balance at 30 September 6.4 3.2 - -______________________________________________________________________ Asset revaluation reserveBalance at 1 July 302.0 10.0 - -Surplus on revaluation of land and buildings, net of tax 0.9 131.0 - -Reserve realised on disposal of land and buildings 0.1 (0.1) - -______________________________________________________________________Balance at 30 September 303.0 140.9 - -______________________________________________________________________ Share option reserveBalance at 1 July 0.3 0.4 0.3 0.4______________________________________________________________________Balance at 30 September 0.3 0.4 0.3 0.4______________________________________________________________________ Other reserveBalance at 1 July 3.4 3.8 - -______________________________________________________________________Balance at 30 September 3.4 3.8 - -______________________________________________________________________ Group CompanyNine months ended 30 September 2006 2005 2006 2005 US$m US$m US$m US$mMovements: Fair value reserveBalance at 1 January 1.2 2.7 - -Fair value changes of available-for-sale investments, net of tax 5.2 0.5 - -______________________________________________________________________Balance at 30 September 6.4 3.2 - -______________________________________________________________________ Asset revaluation reserveBalance at 1 January as previously 336.9 10.3 - - reportedPrior year adjustment (Note 1) (34.9) - - -______________________________________________________________________Balance at 1 January as restated 302.0 10.3 - -Surplus on revaluation of land and buildings, net of tax 0.9 130.7 - -Reserve realised on disposal of land and buildings 0.1 (0.1) - -______________________________________________________________________Balance at 30 September 303.0 140.9 - -______________________________________________________________________ Share option reserveBalance at 1 January 0.3 0.4 0.3 0.4______________________________________________________________________Balance at 30 September 0.3 0.4 0.3 0.4______________________________________________________________________ Other reserveBalance at 1 January 3.8 3.8 - -Reserve realised on disposal of a subsidiary (0.4) - - -______________________________________________________________________Balance at 30 September 3.4 3.8 - -______________________________________________________________________ 10 Revenue reserve Group Company At At At At 30.9.06 30.9.05 30.9.06 30.9.05 US$m US$m US$m US$mComposition:Translation reserve 28.0 (158.3) 119.2 61.0Retained earnings 952.7 1,024.0 344.8 618.5________________________________________________________________________ 980.7 865.7 464.0 679.5________________________________________________________________________ Group CompanyThree months ended 30 September 2006 2005 2006 2005 US$m US$m US$m US$mMovements:Translation reserveBalance at 1 July 16.5 (80.5) 118.3 64.1Translation difference 11.5 (77.8) 0.9 (3.1)Reserve realised on disposal of subsidiaries - - - -________________________________________________________________________Balance at 30 September 28.0 (158.3) 119.2 61.0________________________________________________________________________ Retained earningsBalance at 1 July 898.0 964.7 333.3 578.1Asset revaluation reserve realised on disposal of land and buildings (0.1) 0.1 - -Actuarial loss on defined benefit pension plans, net of tax (1.3) (3.4) - -Loss on dilution of interests in investments - (0.2) - -Profit attributable to shareholders 64.4 70.7 19.8 48.3Dividends (net) (8.3) (7.9) (8.3) (7.9)________________________________________________________________________Balance at 30 September 952.7 1,024.0 344.8 618.5________________________________________________________________________ Group CompanyNine months ended 30 September 2006 2005 2006 2005 US$m US$m US$m US$mMovements:Translation reserveBalance at 1 January as previously reported (63.1) (13.8) 77.3 97.1Prior year adjustment (Note 1) (0.2) - - -________________________________________________________________________Balance at 1 January as restated (63.3) (13.8) 77.3 97.1Translation difference 88.2 (144.5) 41.9 (36.1)Reserve realised on disposal of subsidiaries 3.1 - - -________________________________________________________________________Balance at 30 September 28.0 (158.3) 119.2 61.0________________________________________________________________________ Retained earningsBalance at 1 January 840.7 827.4 314.9 511.9Asset revaluation reserve realised on disposal of land and buildings (0.1) 0.1 - -Other reserve realised on disposal of a subsidiary 0.4 - - -Actuarial loss on defined benefit pension plans, net of tax (4.0) (3.4) - -Gain/(loss) on dilution of interests in investments 1.1 (0.2) - -Profit attributable to shareholders 163.0 229.5 78.3 136.0Dividends (net) (48.4) (29.4) (48.4) (29.4)________________________________________________________________________Balance at 30 September 952.7 1,024.0 344.8 618.5________________________________________________________________________ 11 Minority interests GroupThree months ended 30 September 2006 2005 US$m US$m Balance at 1 July 1,970.6 177.5 Fair value changes of available-for-sale investments, net of tax 2.9 (0.5)Surplus on revaluation of land and buildings, net of tax 0.9 -Actuarial loss on defined benefit pension plans, net of tax (2.0) -Translation difference 13.6 (71.8) Net gain/(loss) recognised directly in equity 15.4 (72.3)Profit for the period 86.4 34.3_____________________________________________________________________Total recognised gain/(loss) for the period 101.8 (38.0)Dividends (net) (27.3) (0.2)Acquisition/disposal of subsidiaries (4.2) 1,471.4_____________________________________________________________________Balance at 30 September 2,040.9 1,610.7_____________________________________________________________________ Nine months ended 30 September 2006 2005 US$m US$m Balance at 1 January as previously reported 2,050.6 222.4Prior year adjustment (Note 1) (63.4) -_____________________________________________________________________Balance at 1 January as restated 1,987.2 222.4 Fair value changes of available-for-sale investments, net of tax 6.0 (0.7)Surplus on revaluation of land and buildings, net of tax 0.9 -Actuarial loss on defined benefit pension plans, net of tax (6.3) -Loss on dilution of interest in investments (1.1) -Translation difference 114.3 (76.1) Net gain/(loss) recognised directly in equity 113.8 (76.8)Profit for the period 234.5 37.9_____________________________________________________________________Total recognised gain/(loss) for the period 348.3 (38.9)Dividends (net) (138.2) (45.1)Issue of shares 9.4 -Acquisition/disposal of subsidiaries (165.8) 1,472.3_____________________________________________________________________Balance at 30 September 2,040.9 1,610.7_____________________________________________________________________ 12 Cash flows from operating activities Group Three months ended Nine months ended 30.9.06 30.9.05 30.9.06 30.9.05 US$m US$m US$m US$m Profit before tax 185.4 127.9 517.5 296.7 Adjustments for: Interest income (10.1) (3.2) (29.6) (4.9)Financing charges 26.0 6.4 67.0 12.1Share of associates' and joint ventures' results (56.9) (64.0) (129.1) (217.1)Depreciation and amortisation of property, plant and equipment and leasehold land use rights 60.1 17.8 172.5 22.1Impairment of other investments - 0.1 0.1 0.1Impairment of intangible assets - - - 0.8Negative goodwill on acquisition of a subsidiary - - (0.2) -Foreign exchange translation difference 1.7 12.2 (19.9) 9.7Profit on sale of property, plant and equipment (3.6) (0.6) (8.0) (0.6)Profit on sale of leasehold land use rights (0.2) - (3.9) -Profit on sale of investment properties - - - (0.8)Loss on sale of repossessed assets 27.3 2.7 79.5 2.7Write-down/(reversal of write-down) of stocks (4.0) 1.3 (1.1) 2.3Impairment/(write-back of impairment) of debtors 25.5 (0.3) 89.2 (1.9)Changes in provisions 3.2 2.2 9.7 4.9Profit on sale of shares in a subsidiary - - (7.2) -Fair value changes of investment properties - - 1.3 -Fair value changes of plantations (1.0) - (2.2) - 68.0 (25.4) 218.1 (170.6)___________________________________________________________________________Operating profit before working capital changes 253.4 102.5 735.6 126.1 Changes in working capital: Development properties for sale - (21.5) - (136.7)Stocks 14.3 (14.2) 115.0 (20.9)Financing debtors 81.5 0.2 512.6 0.8Debtors (58.0) 9.0 (235.1) 3.1Creditors 111.5 74.6 89.1 98.2 149.3 48.1 481.6 (55.5)___________________________________________________________________________Cash flows from operating activities 402.7 150.6 1,217.2 70.6___________________________________________________________________________ 13 Discontinued operations On 23 December 2005, a proposed distribution of 242,824,655 ordinary shares ofMCL Land Limited held by the Company to its shareholders by way of a dividend inspecie, was approved by the shareholders at the Extraordinary General Meeting ofthe Company. The distribution, in the proportion of 0.721394388 MCL Land StockUnits for every one ordinary share in the capital of the Company, was completedon 25 January 2006. MCL Land Limited ceased to be a subsidiary of the Companyaccordingly. The distribution completes the Group's strategy of withdrawing from propertyactivities. Group Three months Nine ended months ended 30.9.2005 30.9.2005 US$m US$m Profit of discontinued operations:Revenue 0.4 1.4Operating income 13.1 13.3_______________________________________________________________________Profit before tax 13.5 14.7Tax (0.1) (0.3)_______________________________________________________________________Profit after tax 13.4 14.4_______________________________________________________________________ Cash flow of discontinued operations:Operating cash flows 27.1 (29.6)Investment cash flows (18.8) (20.8)Financing cash flows (24.3) (62.9)_______________________________________________________________________Total cash flows (16.0) (113.3)_______________________________________________________________________ 14 Interested person transactions Aggregate value of all interested Aggregate value person of all interested transactions person (excluding transactions transactions less conducted under than S$100,000 and shareholders' transactions mandate pursuant conducted under to Rule 920 shareholders' (excluding mandate pursuant transactions less to Rule 920) than S$100,000) Name of interested person US$m US$m_______________________________________________________________________________Three months ended 30 September 2006Jardine Matheson Limited - management consultancy services - 0.3Jardine OneSolution (2001) Pte Ltd - engagement of IT services - 0.1Jardine Shipping Agencies - sale of a motor vehicle - 0.1 - purchase of a used vehicle - 0.1Director of the Company, Alan Yeo - sale of a motor vehicle 0.1 -_______________________________________________________________________________ 0.1 0.6_______________________________________________________________________________ Nine months ended 30 September 2006Jardine Matheson Limited - management consultancy services - 0.7Jardine OneSolution (2001) Pte Ltd - engagement of IT services - 0.1Jardine Shipping Agencies - sale of a motor vehicle - 0.1 - purchase of a used vehicle - 0.1MCL Land Limited - sale of a used vehicle - 0.1Director of the Company,Chang See Hiang - sale of a motor vehicle 0.2 - - purchase of a used vehicle 0.1 -Director of the Company, Alan Yeo - sale of a motor vehicle 0.1 -_______________________________________________________________________________ 0.4 1.1_______________________________________________________________________________ 15 Issue of shares The number of shares that may be issued on conversion of all outstanding optionsgranted pursuant to the CCL Executives' Share Option Schemes amounted to 309,000as at 30 September 2006 (30.9.2005:487,500). Between 1 July 2006 and 30 September 2006, 2,000 ordinary shares were issued forcash pursuant to the exercise of options granted under the CCL Executives' ShareOption Schemes to subscribe for shares in the capital of the Company at theexercise price of S$4.340 per share. On 10 August 2006, 5,126,496 ordinaryshares were allotted and issued to the eligible members of the Company who haveelected to participate in the Jardine Cycle & Carriage Limited Scrip DividendScheme in respect of the final dividend of US$0.15 per ordinary share less 20%Singapore Income Tax for the financial year ended 31 December 2005 at the issueprice of S$9.45 for each new share. Except for those mentioned above, there were no other rights, bonus or equityissues during the period between 1 July 2006 and 30 September 2006. 16 Others The results do not include any pre-acquisition profits and have not beenaffected by any item, transaction or event of a material or unusual nature otherthan the exceptional items shown in note 6 of this report. No significant transaction or event has occurred between 1 October 2006 and thedate of this report. - end - For further information, please contact:Jardine Cycle & Carriage LimitedHo Yeng Tat Tel: 65 64708108 The full text of the Financial Statements and Dividend Announcement for the ninemonths ended 30 September 2006 can be accessed through the internet at'www.jcclgroup.com'. This information is provided by RNS The company news service from the London Stock Exchange