1 Aug 2008 10:40
| To: Business Editor | 1st August 2008 |
| For immediate release |
Jardine Cycle & Carriage Limited
2008 Half Year Financial Statements and Dividend Announcement
The following announcement was issued today by the Company's 67%-owned subsidiary, Jardine Cycle & Carriage Limited.
For further information, please contact:
| Jardine Matheson Limited | |
| Neil M McNamara | (852) 2843 8227 |
| GolinHarris | |
| Kennes Young | (852) 2501 7987 |
1st August 2008
JARDINE CYCLE & CARRIAGE LIMITED
2008 HALF YEAR FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT
Highlights
Underlying earnings per share up 70%
Excellent profit growth across Astra's businesses
Minority interest acquired in major Vietnamese motor group
Interim dividend increased to US¢14.00 per share
"Following the exceptional performance in the first half of the year, the rate of profit growth for the full year is expected to be lower with some concern in Indonesia over inflation and rising interest rates."
Anthony Nightingale, Chairman
1st August 2008
Group Results
| Six months ended 30th June | |||||
| 2008 US$m | 2007 US$m | Change% | 2008 S$m | ||
| Revenue | 5,719 | 4,141 | 38 | 7,891 | |
| Underlying profit attributable to shareholders * | 264 | 152 | 73 | 364 | |
| Profit attributable to shareholders | 265 | 154 | 73 | 366 | |
| US¢ | US¢ | S¢ | |||
| Underlying earnings per share * | 75.52 | 44.44 | 70 | 104.21 | |
| Earnings per share | 75.92 | 44.79 | 70 | 104.75 | |
| Interim dividend per share (gross) ** | 14.00 | 11.00 | 27 | 19.07 | |
| At 30.6.08 US$m | At 31.12.07 US$m | Change % | At 30.6.08 S$m | ||
| Shareholders' funds | 2,360 | 2,160 | 9 | 3,214 | |
| US$ | US$ | S$ | |||
| Net asset value per share | 6.76 | 6.18 | 9 | 9.20 | |
The exchange rate of US$1=S$1.36 (31st December 2007: US$1=S$1.44) was used for translating assets and liabilities at the balance sheet date and US$1=S$1.38 (30th June 2007: US$1=S$1.53) was used for translating the results for the period.
The financial results for the six months ended 30th June 2008 have been prepared in accordance with the International Financial Reporting Standards. These results have not been audited or reviewed by the auditors.
* The basis for calculating underlying earnings is set out in Note 4 of this report.
** The S$ amount is estimated. The actual amount will be determined on the Books Closure Date referred to in Note 12.
CHAIRMAN'S STATEMENT
Overview
The Group enjoyed a very strong first half in 2008 as Astra continued to benefit from positive consumer demand and high palm oil prices.
Performance
Improvements across all the Group's major business segments enabled the revenue for the six months ended 30th June 2008 to grow by 38% to US$5,719 million, compared to the same period in 2007. Underlying profit increased 73% to US$264 million, while underlying earnings per share rose 70% to US¢75.52. Astra's contribution to the Group's underlying profit was US$254 million, up 73%, and the contribution from the Group's other motor interests was 33% higher at US$25 million. Profit attributable to shareholders increased 73% at US$265 million after accounting for non-trading items of US$1 million, consisting mainly of a gain from property disposals offset by restructuring costs.
The Group's consolidated net cash, excluding borrowings within Astra's financial services operations, was US$86 million at 30th June 2008, compared to net debt of US$235 million at the end of 2007 due to strong operating cash flows and a substantial dividend received from an associate, partly offset by the acquisition of an interest in a coal mining concession. Net debt within the Group's financial services operations of US$1,336 million was US$82 million higher than at the end of 2007. The net debt within the parent company was marginally higher at US$37 million.
The Board has declared an interim tax-exempt (one-tier) dividend of US¢14.00 per share (2007: US¢11.00 per share less 18% tax) which is available in cash in US Dollars or Singapore Dollars. In view of the Company's current low net debt position, the Board has decided not to offer a scrip alternative for the interim dividend and to discontinue the scrip dividend scheme. A separate announcement will be issued on the discontinuation of the scheme.
Astra
Astra benefited from favourable trading conditions and continuing high palm oil prices in the first half of 2008. It reported a net profit, under Indonesian accounting standards, equivalent to US$515 million, an increase of 81%.
Automotive and Financial Services
Astra's automotive and financial services businesses performed well and produced a contribution to the Group's underlying profit of US$162 million, an increase of 50%.
The Indonesian wholesale motor vehicle market rose by 48% in the first six months of 2008 to 293,000 units. Astra's sales grew at a lower rate of 41% to 148,000 units, leading to a decline in market share from 53% to 51%. The wholesale motorcycle market in Indonesia grew by 44% to 3.1 million units during the same period. The Astra Honda Motor manufacturing and distribution joint venture saw its sales increase by 52% to 1.4 million units, resulting in an increase in its market share from 44% to 46%.
Astra Otoparts, in which Astra has recently increased its interest to 92%, produced improved results following increases in domestic and export sales, higher margins and lower operating expenses.
Astra's consumer finance operations also performed well in the strong automotive market, with amounts financed by Federal International Finance and Astra Credit Companies growing by 39% to US$1.4 billion. Bank Permata's results were ahead of the same period last year, due to improved net interest income and lower operating expenses.
Resources and Other
Astra's resources and other businesses did particularly well with a contribution to the Group's underlying profit in the first six months of 2008 of US$112 million, up 118%.
Astra Agro Lestari's results were strongly ahead for the period as the company reported a 134% growth in net profit equivalent to US$173 million. Palm oil production rose by 20% to 494,000 tonnes following an increase in planted area and better weather conditions. Crude palm oil prices achieved were also 59% higher, compared with the first half of 2007.
Astra's heavy equipment operations continued their good performance, with United Tractors reporting a profit for the six months equivalent to US$131 million, an increase of 118%. Sales of Komatsu equipment rose by 44% to 2,500 units, and the company's mining subsidiary, Pamapersada Nusantara, produced improved results with the volume of coal extracted up 23% and overburden removed up 31%. United Tractors completed the acquisition in February of a controlling interest in a coal mining concession in Central Kalimantan. It has recently announced a rights issue to raise some US$390 million to refinance this acquisition and to provide funding for its working capital requirements and further investments, particularly in the mining sector.
Other Motor Interests
The underlying profit contribution from the Group's other motor interests rose by 33% to US$25 million, with the Singapore motor operations and 38%-owned Indonesian associate, Tunas Ridean, contributing most of the increase. In Malaysia, 59%-owned Cycle & Carriage Bintang ("CCB") produced a modest profit contribution in the face of challenging conditions. Following a restructuring that has refocused its activities on its Mercedes-Benz franchise, CCB recently announced that it is to return surplus cash to shareholders by way of a special dividend, the Company's share of which is some US$18 million.
In July 2008, the Company invested approximately US$77 million for a 20% shareholding in Truong Hai Auto Corporation ("THACO"), the second largest Vietnamese automotive company. THACO's principal activities include automotive manufacturing, distribution and retailing, and it carries the full range of Kia commercial vehicles and passenger cars and certain other light and heavy commercial vehicles.
Outlook
Following the exceptional performance in the first half of the year, the rate of profit growth for the full year is expected to be lower with some concern in Indonesia over inflation and rising interest rates.
Anthony Nightingale
Chairman
1st August 2008
Statement pursuant to Rule 705(4) of the Listing Manual
The directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the accompanying unaudited interim financial results for the six months ended 30th June 2008 to be false or misleading in any material respect.
On behalf of the Directors
Anthony Nightingale
Director
Hassan Abas
Director
1st August 2008
| Jardine Cycle & Carriage Limited |
| Consolidated Profit and Loss Account |
| Three months ended | Six months ended | ||||||||||
| 30.6.08 | 30.6.07 | Change | 30.6.08 | 30.6.07 | Change | ||||||
| Note | US$m | US$m | % | US$m | US$m | % | |||||
| z | |||||||||||
| Revenue | 2,968.3 | 2,202.7 | 35 | 5,718.5 | 4,140.6 | 38 | |||||
| Cost of sales | (2,297.7) | (1,736.2) | 32 | (4,440.3) | (3,272.1) | 36 | |||||
| Gross profit | 670.6 | 466.5 | 44 | 1,278.2 | 868.5 | 47 | |||||
| Other operating income | 32.4 | 21.0 | 54 | 58.8 | 57.9 | 2 | |||||
| Selling and distribution expenses | (154.8) | (131.9) | 17 | (289.5) | (249.2) | 16 | |||||
| Administrative expenses | (138.2) | (128.0) | 8 | (270.9) | (238.9) | 13 | |||||
| Other operating expenses | (3.3) | (0.3) | nm | (5.8) | (6.9) | -16 | |||||
| Operating profit | 406.7 | 227.3 | 79 | 770.8 | 431.4 | 79 | |||||
| Financing charges | (13.1) | (21.7) | -40 | (28.5) | (44.3) | -36 | |||||
| Financing income | 14.5 | 8.3 | 75 | 27.8 | 16.4 | 70 | |||||
| Net financing charges | 1.4 | (13.4) | nm | (0.7) | (27.9) | -97 | |||||
| Share of associates' and joint | 73.0 | 44.1 | 66 | 132.5 | 90.4 | 47 | |||||
| ventures' results after tax | |||||||||||
| Profit before tax | 2 | 481.1 | 258.0 | 86 | 902.6 | 493.9 | 83 | ||||
| Tax | 3 | (147.3) | (72.0) | 105 | (265.3) | (126.4) | 110 | ||||
| Profit after tax | 333.8 | 186.0 | 79 | 637.3 | 367.5 | 73 | |||||
| Profit attributable to: | |||||||||||
| Shareholders of the Company | 137.0 | 75.8 | 81 | 265.2 | 153.5 | 73 | |||||
| Minority interests | 196.8 | 110.2 | 79 | 372.1 | 214.0 | 74 | |||||
| 333.8 | 186.0 | 79 | 637.3 | 367.5 | 73 | ||||||
| US¢ | US¢ | US¢ | US¢ | ||||||||
| Earnings per share | 4 | 39.22 | 22.12 | 77 | 75.92 | 44.79 | 70 | ||||
| basic | |||||||||||
| diluted | 39.22 | 22.11 | 77 | 75.92 | 44.78 | 70 | |||||
nm: not meaningful
| Jardine Cycle & Carriage Limited |
| Consolidated Balance Sheet |
| At | At | ||||
| Note | 30.6.08 | 31.12.07 | |||
| US$m | US$m | ||||
| Non-current assets | |||||
| Intangible assets | 478.9 | 460.4 | |||
| Leasehold land use rights | 418.4 | 403.7 | |||
| Property, plant and equipment | 1,627.6 | 1,313.2 | |||
| Investment properties | 22.8 | 28.0 | |||
| Plantations | 559.9 | 514.6 | |||
| Interests in associates and joint ventures | 1,386.9 | 1,342.9 | |||
| Other investments | 152.7 | 133.9 | |||
| Non-current debtors | 1,010.5 | 878.3 | |||
| Deferred tax assets | 65.8 | 60.1 | |||
| 5,723.5 | 5,135.1 | ||||
| Current assets | |||||
| Stocks | 739.1 | 642.9 | |||
| Current debtors | 2,124.2 | 1,817.3 | |||
| Current tax assets | 61.1 | 120.8 | |||
| Current investments | 36.9 | 20.8 | |||
| Bank balances and other liquid funds | |||||
| - non-financial services companies | 993.2 | 529.6 | |||
| - financial services companies | 158.1 | 166.7 | |||
| 1,151.3 | 696.3 | ||||
| 4,112.6 | 3,298.1 | ||||
| Non-current assets classified as held for sale | 10.4 | 3.1 | |||
| 4,123.0 | 3,301.2 | ||||
| Total assets | 9,846.5 | 8,436.3 | |||
| Non-current liabilities | |||||
| Provisions | 19.7 | 17.8 | |||
| Long-term borrowings | 5 | ||||
| - non-financial services companies | 334.3 | 323.7 | |||
| - financial services companies | 647.7 | 615.5 | |||
| 982.0 | 939.2 | ||||
| Deferred tax liabilities | 383.5 | 306.4 | |||
| Pension liabilities | 36.5 | 42.3 | |||
| Other non-current liabilities | 77.8 | 58.6 | |||
| 1,499.5 | 1,364.3 | ||||
| Current liabilities | |||||
| Provisions | 34.0 | 29.7 | |||
| Current borrowings | 5 | ||||
| - non-financial services companies | 573.8 | 446.2 | |||
| - financial services companies | 849.1 | 806.1 | |||
| 1,422.9 | 1,252.3 | ||||
| Current tax liabilities | 154.7 | 136.3 | |||
| Current creditors | 1,698.3 | 1,095.8 | |||
| 3,309.9 | 2,514.1 | ||||
| Liabilities directly associated with non-current assets | |||||
| held for sale | 4.7 | - | |||
| 3,314.6 | 2,514.1 | ||||
| Total liabilities | 4,814.1 | 3,878.4 | |||
| Net assets | 5,032.4 | 4,557.9 | |||
| Equity | |||||
| Share capital | 6 | 555.3 | 555.2 | ||
| Fair value and other reserves | 7 | 335.5 | 334.8 | ||
| Revenue reserve | 8 | 1,469.1 | 1,269.7 | ||
| Shareholders' funds | 2,359.9 | 2,159.7 | |||
| Minority interests | 9 | 2,672.5 | 2,398.2 | ||
| Total equity | 5,032.4 | 4,557.9 |
| Jardine Cycle & Carriage Limited |
| Consolidated Statement of Recognised Income and Expense |
| Three months ended | Six months ended | |||||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | |||||
| US$m | US$m | US$m | US$m | |||||
| Revaluation surplus of land and buildings, net | - | 0.7 | - | 0.7 | ||||
| of tax | ||||||||
| Fair value changes of available-for-sale | 3.2 | 4.4 | (3.7) | (12.6) | ||||
| investments, net of tax | ||||||||
| Fair value changes of hedging derivatives, net | 6.8 | (0.9) | 7.2 | (0.6) | ||||
| of tax | ||||||||
| Actuarial gain/(loss) on defined benefit pension | 3.0 | 0.1 | 2.8 | (2.7) | ||||
| plans, net of tax | ||||||||
| Translation difference | (7.7) | 28.1 | 94.3 | (8.7) | ||||
| Net gain/(loss) recognised directly in equity | 5.3 | 32.4 | 100.6 | (23.9) | ||||
| Profit after tax | 333.8 | 186.0 | 637.3 | 367.5 | ||||
| Total recognised income and expense for | 339.1 | 218.4 | 737.9 | 343.6 | ||||
| the period | ||||||||
| Total recognised income and expense | ||||||||
| attributable to: | ||||||||
| Shareholders of the Company | 136.5 | 90.9 | 311.8 | 142.7 | ||||
| Minority interests | 202.6 | 127.5 | 426.1 | 200.9 | ||||
| 339.1 | 218.4 | 737.9 | 343.6 | |||||
| Jardine Cycle & Carriage Limited |
| Company Balance Sheet |
| At | At | |||
| Note | 30.6.08 | 31.12.07 | ||
| US$m | US$m | |||
| Non-current assets | ||||
| Property, plant and equipment | 0.7 | 0.7 | ||
| Interests in subsidiaries | 1,347.9 | 1,276.3 | ||
| Interests in associates | 28.0 | 26.4 | ||
| Other investment | 6.9 | 6.5 | ||
| 1,383.5 | 1,309.9 | |||
| Current assets | ||||
| Debtors | 121.1 | 8.4 | ||
| Bank balances and other liquid funds | 14.4 | 6.9 | ||
| 135.5 | 15.3 | |||
| Total assets | 1,519.0 | 1,325.2 | ||
| Non-current liabilities | ||||
| Deferred tax liabilities | 0.4 | 0.3 | ||
| 0.4 | 0.3 | |||
| Current liabilities | ||||
| Current borrowings | 51.4 | 38.1 | ||
| Current tax liabilities | 0.8 | 0.8 | ||
| Dividend payable | 113.1 | - | ||
| Creditors | 76.4 | 74.6 | ||
| 241.7 | 113.5 | |||
| Total liabilities | 242.1 | 113.8 | ||
| Net assets | 1,276.9 | 1,211.4 | ||
| Share capital and reserves | ||||
| Share capital | 6 | 555.3 | 555.2 | |
| Share option reserve | 7 | 0.3 | 0.3 | |
| Revenue reserve | 8 | 721.3 | 655.9 | |
| Shareholders' funds | 1,276.9 | 1,211.4 | ||
| Net asset value per share | US$3.66 | US$3.47 |
| Jardine Cycle & Carriage Limited |
| Company Statement of Recognised Income and Expense |
| Three months ended | Six months ended | |||||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | |||||
| US$m | US$m | US$m | US$m | |||||
| Translation difference | 16.6 | (10.4) | 72.6 | 2.2 | ||||
| Net gain/(loss) recognised directly in equity | 16.6 | (10.4) | 72.6 | 2.2 | ||||
| Profit after tax | 106.5 | 65.0 | 104.5 | 68.1 | ||||
| Total recognised income and expense | 123.1 | 54.6 | 177.1 | 70.3 | ||||
| for the period | ||||||||
| Jardine Cycle & Carriage Limited |
| Consolidated Statement of Cash Flows |
| Three months ended | Six months ended | ||||||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | ||||||
| Note | US$m | US$m | US$m | US$m | |||||
| Cash flows from operating activities | 10 | 393.3 | 336.6 | 820.2 | 796.9 | ||||
| Cash generated from operations | |||||||||
| Interest paid | (12.7) | (18.7) | (28.6) | (41.1) | |||||
| Interest received | 18.3 | 9.3 | 27.8 | 17.4 | |||||
| Other finance costs paid | (0.7) | (2.7) | (1.7) | (2.8) | |||||
| Income tax paid | (39.7) | (33.1) | (198.2) | (86.8) | |||||
| (34.8) | (45.2) | (200.7) | (113.3) | ||||||
| Net cash flows from operating activities | 358.5 | 291.4 | 619.5 | 683.6 | |||||
| Cash flows from investing activities | |||||||||
| Sale of leasehold land use rights | 6.1 | 0.6 | 6.1 | 9.7 | |||||
| Sale of property, plant and equipment | 7.3 | 21.3 | 13.2 | 22.9 | |||||
| Sale of investment properties | - | - | 9.0 | - | |||||
| Sale of subsidiaries, net of cash disposed | 4.6 | - | (38.2) | - | |||||
| Sale of shares in associates | 4.2 | 5.1 | 4.2 | 5.1 | |||||
| Sale of other investments | 7.6 | 0.5 | 7.8 | 7.0 | |||||
| Purchase of intangible assets | (4.4) | (13.7) | (9.6) | (47.8) | |||||
| Purchase of leasehold land use rights | (3.4) | (1.7) | (15.8) | (3.5) | |||||
| Purchase of property, plant and equipment | (103.7) | (63.2) | (217.9) | (125.5) | |||||
| Purchase of plantations | (14.9) | (8.4) | (33.9) | (15.7) | |||||
| Purchase of subsidiaries, net of cash acquired | (15.2) | 5.6 | (131.4) | 4.6 | |||||
| Purchase of shares in associates | (2.3) | - | (2.3) | - | |||||
| Purchase of other investments | (24.0) | (15.5) | (45.4) | (25.6) | |||||
| Capital repayment of other investments | 7.5 | 0.6 | 10.3 | 3.0 | |||||
| Dividends received from associates (net) | 21.7 | 11.0 | 143.8 | 19.0 | |||||
| Net cash flows used in investing activities | (108.9) | (57.8) | (300.1) | (146.8) | |||||
| Cash flows from financing activities | |||||||||
| Proceeds from issue of shares | - | - | 0.1 | 0.1 | |||||
| Drawdown of loans | 700.0 | 595.4 | 1,431.4 | 947.2 | |||||
| Repayment of loans | (499.5) | (643.7) | (1,239.6) | (1,327.2) | |||||
| Dividends paid to minority interests | (56.0) | (46.7) | (56.2) | (46.8) | |||||
| Net cash flows from/(used in) financing activities | 144.5 | (95.0) | 135.7 | (426.7) | |||||
| Net change in cash and cash equivalents | 394.1 | 138.6 | 455.1 | 110.1 | |||||
| Cash and cash equivalents at the beginning | 753.5 | 519.7 | 672.1 | 551.9 | |||||
| of the period | |||||||||
| Effect of exchange rate changes | (5.8) | 3.3 | 14.6 | (0.4) | |||||
| Cash and cash equivalents at the end | 1,141.8 | 661.6 | 1,141.8 | 661.6 | |||||
| of the period | |||||||||
| Jardine Cycle & Carriage Limited |
| Notes |
1. Basis of preparation
The financial statements are consistent with those set out in the 2007 audited accounts which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). There have been no changes to the accounting policies described in the 2007 audited accounts except for the adoption of the new interpretations shown below:
| IFRIC 11 | Group and Treasury Share Transactions |
| IFRIC 12 | Service Concession Arrangements |
| IFRIC 14 | The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their interaction |
The adoption of the new interpretations did not have a material impact on the results of the Group.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Estimates and judgments used in preparing the financial statements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.
2. Profit before tax
| Group | ||||||||
| Three months ended | Six months ended | |||||||
| 30.6.08 | 30.6.07 | Change | 30.6.08 | 30.6.07 | Change | |||
| US$m | US$m | % | US$m | US$m | % | |||
| Profit before tax is determined after including: | ||||||||
| Depreciation of property, plant and | ||||||||
| equipment * | (76.2) | (63.6) | 20 | (149.2) | (125.4) | 19 | ||
| Amortisation of leasehold land use rights and | ||||||||
| intangible assets | (6.6) | (8.6) | -23 | (13.8) | (13.5) | 2 | ||
| Provision for warranty and goodwill claims | (0.9) | (1.8) | -50 | (2.7) | (4.4) | -39 | ||
| Profit/(loss) on disposal of: | ||||||||
| - leasehold land use rights | 4.1 | 0.1 | nm | 4.1 | 7.3 | -44 | ||
| - property, plant and equipment | 3.0 | 3.6 | -17 | 4.2 | 4.7 | -11 | ||
| - investment properties | - | - | - | 1.1 | - | 100 | ||
| - subsidiaries | 0.2 | - | 100 | 3.7 | (1.5) | nm | ||
| - associates | 1.2 | (2.6) | nm | 1.2 | (2.6) | nm | ||
| - repossessed assets | (14.6) | (21.1) | -31 | (28.8) | (29.7) | -3 | ||
| Investment income | 3.6 | 3.3 | 9 | 6.9 | 6.4 | 8 | ||
| Net write-down of stocks | (1.5) | (1.1) | 36 | (2.3) | (2.0) | 15 | ||
| Impairment of debtors | (29.9) | (19.7) | 52 | (49.5) | (47.2) | 5 | ||
| Net exchange gain/(loss) | 0.5 | 3.6 | -86 | 4.8 | (2.6) | nm | ||
| Excess of net fair value of identified assets, | ||||||||
| liabilities and contingent liabilities acquired | ||||||||
| over cost of business combination | - | 2.9 | -100 | - | 8.9 | -100 | ||
nm: not meaningful
* Increase in depreciation due to purchase of property, plant and equipment
3. Tax
The provision for income tax is based on the statutory tax rates of the respective countries in which the companies operate after taking into account non-deductible expenses and group tax relief.
4. Earnings per share
| Group | ||||||||||
| Three months ended | Six months ended | |||||||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | |||||||
| US$m | US$m | US$m | US$m | |||||||
| Basic earnings per share | ||||||||||
| Profit attributable to shareholders | 137.0 | 75.8 | 265.2 | 153.5 | ||||||
| Weighted average number of ordinary shares | 349.3 | 342.7 | 349.3 | 342.7 | ||||||
| in issue (millions) | ||||||||||
| Basic earnings per share | US¢39.22 | US¢22.12 | US¢75.92 | US¢44.79 | ||||||
| Diluted earnings per share | ||||||||||
| Profit attributable to shareholders | 137.0 | 75.8 | 265.2 | 153.5 | ||||||
| Weighted average number of ordinary shares | 349.3 | 342.7 | 349.3 | 342.7 | ||||||
| in issue (millions) | ||||||||||
| Adjustment for assumed conversion of share | - * | 0.2 | -* | 0.1 | ||||||
| options (millions) | ||||||||||
| Weighted average number of ordinary shares | 349.3 | 342.9 | 349.3 | 342.8 | ||||||
| for diluted earnings per share (millions) | ||||||||||
| Diluted earnings per share | US¢39.22 | US¢22.11 | US¢75.92 | US¢44.78 | ||||||
| Underlying earnings per share | ||||||||||
| Underlying profit attributable to shareholders | 135.8 | 75.7 | 263.8 | 152.3 | ||||||
| Basic underlying earnings per share | US¢38.88 | US¢22.09 | US¢75.52 | US¢44.44 | ||||||
| Diluted underlying earnings per share | US¢38.88 | US¢22.08 | US¢75.52 | US¢44.43 | ||||||
* less than 0.1 million
A reconciliation of the profit attributable to shareholders and underlying profit attributable to shareholders is as follows:
| Group | |||||||
| Three months ended | Six months ended | ||||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | ||||
| US$m | US$m | US$m | US$m | ||||
| Profit attributable to shareholders | 137.0 | 75.8 | 265.2 | 153.5 | |||
| Less: | |||||||
| Non-trading items (net of tax and minority interests) | |||||||
| Net gain/(loss) on disposal of subsidiaries | 0.1 | - | - | (1.5) | |||
| Loss on disposal of an associate | - | (1.3) | - | (1.3) | |||
| Profit on sale of surplus properties | 1.3 | - | 2.2 | - | |||
| Restructuring of operations | (0.2) | - | (0.8) | - | |||
| Excess of net fair value of identified assets, | |||||||
| liabilities and contingent liabilities acquired | |||||||
| over cost of business combination | - | 1.4 | - | 4.0 | |||
| 1.2 | 0.1 | 1.4 | 1.2 | ||||
| Underlying profit attributable to shareholders | 135.8 | 75.7 | 263.8 | 152.3 | |||
The underlying profit attributable to shareholders by business is shown below:
| Group | ||||||||
| Three months ended | Six months ended | |||||||
| 30.6.08 | 30.6.07 | Change | 30.6.08 | 30.6.07 | Change | |||
| US$m | US$m | % | US$m | US$m | % | |||
| Astra | ||||||||
| Motor vehicles | 31.6 | 22.0 | 44 | 56.8 | 43.4 | 31 | ||
| Motorcycles | 23.3 | 11.1 | 110 | 41.5 | 27.1 | 53 | ||
| Other automotive | 11.7 | 6.3 | 86 | 22.8 | 9.6 | 138 | ||
| Financial services | 19.9 | 14.6 | 36 | 41.0 | 28.2 | 45 | ||
| Automotive and financial services | 86.5 | 54.0 | 60 | 162.1 | 108.3 | 50 | ||
| Agribusiness | 33.2 | 18.3 | 81 | 69.2 | 30.1 | 130 | ||
| Heavy equipment | 22.4 | 10.2 | 120 | 39.2 | 18.4 | 113 | ||
| Others | 1.4 | 1.3 | 8 | 3.3 | 2.7 | 22 | ||
| Resources and other | 57.0 | 29.8 | 91 | 111.7 | 51.2 | 118 | ||
| Corporate costs and others | (8.6) | (8.8) | -2 | (19.6) | (12.6) | 56 | ||
| 134.9 | 75.0 | 80 | 254.2 | 146.9 | 73 | |||
| Other motor interests | ||||||||
| Singapore | 10.1 | 8.6 | 17 | 18.5 | 14.6 | 27 | ||
| Malaysia | 1.0 | 0.8 | 25 | 1.5 | 1.2 | 25 | ||
| Indonesia (Tunas Ridean) | 3.0 | 1.6 | 88 | 5.2 | 3.1 | 68 | ||
| 14.1 | 11.0 | 28 | 25.2 | 18.9 | 33 | |||
| Corporate costs | (2.6) | (3.7) | -30 | (5.0) | (6.9) | -28 | ||
| Withholding tax on dividends from Indonesia | (10.6) | (6.6) | 61 | (10.6) | (6.6) | 61 | ||
| (13.2) | (10.3) | 28 | (15.6) | (13.5) | 16 | |||
| Underlying profit attributable to shareholders | 135.8 | 75.7 | 79 | 263.8 | 152.3 | 73 | ||
5. Borrowings
| Group | ||||
| At |
| At | ||
| 30.6.08 | 31.12.07 | |||
| US$m | US$m | |||
| Long-term borrowings: | ||||
| - secured | 751.4 | 684.7 | ||
| - unsecured | 230.6 | 254.5 | ||
| 982.0 | 939.2 | |||
| Current borrowings: | ||||
| - secured | 890.0 | 764.3 | ||
| - unsecured | 532.9 | 488.0 | ||
| 1,422.9 | 1,252.3 | |||
| Total borrowings | 2,404.9 | 2,191.5 | ||
Certain subsidiaries of the Group have pledged their assets in order to obtain bank facilities from financial institutions. The value of assets pledged was US$1,183.0 million (31 December 2007: US$1,110.1 million).
6. Share capital
| Company | |||
| Three months ended 30 June | 2008 |
| 2007 |
| US$m | US$m | ||
| Issued and fully paid: | |||
| Balance at 1 April - 349,281,506 (2007: 342,739,386) ordinary shares | 555.3 | 495.8 | |
| Issue of 30,000 (2007: 2,000) ordinary shares under the CCL Executives' | |||
| Share Option Schemes | - * | - * | |
| Balance at 30 June - 349,311,506 (2007: 342,741,386) ordinary shares | 555.3 | 495.8 | |
| Six months ended 30 June | 2008 |
| 2007 |
| US$m | US$m | ||
| Issued and fully paid: | |||
| Balance at 1 January - 349,260,506 (2007: 342,611,386) ordinary shares | 555.2 | 495.7 | |
| Issue of 51,000 (2007: 130,000) ordinary shares under the CCL Executives' | |||
| Share Option Schemes | 0.1 | 0.1 | |
| Balance at 30 June - 349,311,506 (2007: 342,741,386) ordinary shares | 555.3 | 495.8 | |
* less than 0.1 million
The Company did not hold any treasury shares as at 30 June 2008 (30 June 2007: Nil).
The number of shares that may be issued on conversion of all outstanding options granted pursuant to the CCL Executives' Share Option Schemes amounted to 50,000 as at 30 June 2008 (30 June 2007: 161,000).
Except for those mentioned above, there were no other rights, bonus or equity issues during the period between 1 April 2008 and 30 June 2008.
7. Fair value and other reserves
| Group | Company | ||||||
| At | At | At | At | ||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | ||||
| US$m | US$m | US$m | US$m | ||||
| Composition: | |||||||
| Fair value reserve | 0.2 | 2.5 | - | - | |||
| Asset revaluation reserve | 329.6 | 318.1 | - | - | |||
| Hedging reserve | 2.1 | (1.0) | - | - | |||
| Share option reserve | 0.3 | 0.3 | 0.3 | 0.3 | |||
| Other reserve | 3.3 | 3.3 | - | - | |||
| 335.5 | 323.2 | 0.3 | 0.3 | ||||
| Group | Company | ||||||||
| Three months ended 30 June | 2008 | 2007 | 2008 | 2007 | |||||
| US$m | US$m | US$m | US$m | ||||||
| Movements: | |||||||||
| Fair value reserve | |||||||||
| Balance at 1 April | (0.5) | 1.0 | - | - | |||||
| Fair value changes of available-for-sale | |||||||||
| investments, net of tax | 0.7 | 1.5 | - | - | |||||
| Balance at 30 June | 0.2 | 2.5 | - | - | |||||
| Asset revaluation reserve | |||||||||
| Balance at 1 April | 329.2 | 318.0 | - | - | |||||
| Revaluation surplus of land and buildings, net | |||||||||
| of tax | - | 0.3 | - | - | |||||
| Reserve realised on disposal of land | |||||||||
| and buildings | 0.4 | (0.2) | - | - | |||||
| Balance at 30 June | 329.6 | 318.1 | - | - | |||||
| Hedging reserve | |||||||||
| Balance at 1 April | (0.4) | (0.6) | - | - | |||||
| Fair value changes of derivatives, net of tax | 2.5 | (0.4) | - | - | |||||
| Balance at 30 June | 2.1 | (1.0) | - | - | |||||
| Share option reserve | |||||||||
| Balance at 1 April and 30 June | 0.3 | 0.3 | 0.3 | 0.3 | |||||
| Other reserve | |||||||||
| Balance at 1 April and 30 June | 3.3 | 3.3 | - | - | |||||
| Group | Company | ||||||||
| Six months ended 30 June | 2008 | 2007 | 2008 | 2007 | |||||
| US$m | US$m | US$m | US$m | ||||||
| Movements: | |||||||||
| Fair value reserve | |||||||||
| Balance at 1 January | 2.5 | 9.5 | - | - | |||||
| Fair value changes of available-for-sale | |||||||||
| investments, net of tax | (2.3) | (7.0) | - | - | |||||
| Balance at 30 June | 0.2 | 2.5 | - | - | |||||
| Asset revaluation reserve | |||||||||
| Balance at 1 January | 329.6 | 317.9 | - | - | |||||
| Revaluation surplus of land and buildings, net | - | 0.3 | - | - | |||||
| of tax | |||||||||
| Reserve realised on disposal of land | - | (0.1) | - | - | |||||
| and buildings | |||||||||
| Balance at 30 June | 329.6 | 318.1 | - | - | |||||
| Hedging reserve | |||||||||
| Balance at 1 January | (0.9) | (0.8) | - | - | |||||
| Fair value changes of derivatives, net of tax | 3.0 | (0.2) | - | - | |||||
| Balance at 30 June | 2.1 | (1.0) | - | - | |||||
| Share option reserve | |||||||||
| Balance at 1 April and 30 June | 0.3 | 0.3 | 0.3 | 0.3 | |||||
| Other reserve | |||||||||
| Balance at 1 April and 30 June | 3.3 | 3.3 | - | - | |||||
8 Revenue reserve
| Group | Company | ||||||||
| At | At | At | At | ||||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | ||||||
| US$m | US$m | US$m | US$m | ||||||
| Composition: | |||||||||
| Translation reserve | 41.4 | 64.1 | 295.8 | 155.4 | |||||
| Retained earnings | 1,427.7 | 1,118.1 | 425.5 | 417.6 | |||||
| 1,469.1 | 1,182.2 | 721.3 | 573.0 | ||||||
| Group | Company | ||||||||
| Three months ended 30 June | 2008 | 2007 | 2008 | 2007 | |||||
| US$m | US$m | US$m | US$m | ||||||
| Movements: | |||||||||
| Translation reserve | |||||||||
| Balance at 1 April | 46.5 | 50.4 | 279.2 | 165.8 | |||||
| Translation difference | (5.1) | 13.6 | 16.6 | (10.4) | |||||
| Reserve realised on disposal of subsidiaries | - | 0.1 | - | - | |||||
| Balance at 30 June | 41.4 | 64.1 | 295.8 | 155.4 | |||||
| Retained earnings | |||||||||
| Balance at 1 April | 1,401.4 | 1,089.5 | 430.7 | 400.0 | |||||
| Asset revaluation reserve realised on | |||||||||
| disposal of land and buildings | (0.4) | 0.2 | - | - | |||||
| Actuarial gain on defined benefit pension plans, | |||||||||
| net of tax | 1.4 | - | - | - | |||||
| Profit attributable to shareholders | 137.0 | 75.8 | 106.5 | 65.0 | |||||
| Total recognised gain for the period | 138.0 | 76.0 | 106.5 | 65.0 | |||||
| Dividends (net) | (111.7) | (47.4) | (111.7) | (47.4) | |||||
| Balance at 30 June | 1,427.7 | 1,118.1 | 425.5 | 417.6 | |||||
| Group | Company | ||||||||
| Six months ended 30 June | 2008 | 2007 | 2008 | 2007 | |||||
| US$m | US$m | US$m | US$m | ||||||
| Movements: | |||||||||
| Translation reserve | |||||||||
| Balance at 1 January | (3.2) | 66.9 | 223.2 | 153.2 | |||||
| Translation difference | 44.6 | (4.3) | 72.6 | 2.2 | |||||
| Reserve realised on disposal of subsidiaries | - | 1.5 | - | - | |||||
| Balance at 30 June | 41.4 | 64.1 | 295.8 | 155.4 | |||||
| Retained earnings | |||||||||
| Balance at 1 January | 1,272.9 | 1,012.8 | 432.7 | 396.9 | |||||
| Asset revaluation reserve realised on | - | 0.1 | - | - | |||||
| disposal of land and buildings | |||||||||
| Actuarial gain/(loss) on defined benefit | |||||||||
| pension plans, net of tax | 1.3 | (1.1) | - | - | |||||
| Profit attributable to shareholders | 265.2 | 153.5 | 104.5 | 68.1 | |||||
| Total recognised gain for the period | 266.5 | 152.5 | 104.5 | 68.1 | |||||
| Dividends (net) | (111.7) | (47.4) | (111.7) | (47.4) | |||||
| Reserve realised on disposal of subsidiaries | - | 0.2 | - | - | |||||
| Balance at 30 June | 1,427.7 | 1,118.1 | 425.5 | 417.6 | |||||
9. Minority interests
| Group | |||
| Three months ended 30 June | 2008 | 2007 | |
| US$m | US$m | ||
| Balance at 1 April | 2,595.9 | 2,225.5 | |
| Revaluation surplus of land and buildings, net of tax | - | 0.4 | |
| Fair value changes of available-for-sale investments, net of tax | 2.5 | 2.9 | |
| Fair value changes of hedging derivatives, net of tax | 4.3 | (0.5) | |
| Actuarial gain on defined benefit pension plans, net of tax | 1.6 | 0.1 | |
| Translation difference | (2.6) | 14.4 | |
| Total gain recognised directly in equity | 5.8 | 17.3 | |
| Profit for the period | 196.8 | 110.2 | |
| Total recognised gain for the period | 202.6 | 127.5 | |
| Dividends (net) | (161.9) | (94.8) | |
| Acquisition/disposal of subsidiaries | 35.9 | (2.0) | |
| Balance at 30 June | 2,672.5 | 2,256.2 | |
| Six months ended 30 June | 2008 | 2007 | |
| US$m | US$m | ||
| Balance at 1 January | 2,398.2 | 2,149.6 | |
| Revaluation surplus of land and buildings, net of tax | - | 0.4 | |
| Fair value changes of available-for-sale investments, net of tax | (1.4) | (5.6) | |
| Fair value changes of hedging derivatives, net of tax | 4.2 | (0.4) | |
| Actuarial gain/(loss) on defined benefit pension plans, net of tax | 1.5 | (1.6) | |
| Translation difference | 49.7 | (5.9) | |
| Total gain/(loss) recognised directly in equity | 54.0 | (13.1) | |
| Profit for the period | 372.1 | 214.0 | |
| Total recognised gain for the period | 426.1 | 200.9 | |
| Dividends (net) | (162.1) | (94.9) | |
| Acquisition/disposal of subsidiaries | 10.3 | 0.6 | |
| Balance at 30 June | 2,672.5 | 2,256.2 | |
10. Cash flows from operating activities
| Group | |||||||||
| Three months ended | Six months ended | ||||||||
| 30.6.08 | 30.6.07 | 30.6.08 | 30.6.07 | ||||||
| US$m | US$m | US$m | US$m | ||||||
| Profit before tax | 481.1 | 258.0 | 902.6 | 493.9 | |||||
| Adjustments for: | |||||||||
| Financing charges | 13.1 | 21.7 | 28.5 | 44.3 | |||||
| Financing income | (14.5) | (8.3) | (27.8) | (16.4) | |||||
| Share of associates' and joint ventures' results | (73.0) | (44.1) | (132.5) | (90.4) | |||||
| Depreciation of property, plant and | |||||||||
| equipment | 76.2 | 63.6 | 149.2 | 125.4 | |||||
| Amortisation of leasehold land use rights and | 6.6 | 8.6 | 13.8 | 13.5 | |||||
| intangible assets | |||||||||
| (Profit)/loss on disposal of: | |||||||||
| - leasehold land use rights | (4.1) | (0.1) | (4.1) | (7.3) | |||||
| - property, plant and equipment | (3.0) | (3.6) | (4.2) | (4.7) | |||||
| - investment properties | - | - | (1.1) | - | |||||
| - repossessed assets | 14.6 | 21.1 | 28.8 | 29.7 | |||||
| - subsidiaries | (0.2) | - | (3.7) | 1.5 | |||||
| - associates | (1.2) | 2.6 | (1.2) | 2.6 | |||||
| Fair value changes of investment properties | - | (0.4) | - | (0.4) | |||||
| Write-down of stocks | 1.5 | 1.1 | 2.3 | 2.0 | |||||
| Impairment of debtors | 29.9 | 19.7 | 49.5 | 47.2 | |||||
| Changes in provisions | 5.6 | 1.9 | 9.0 | 5.5 | |||||
| Foreign exchange translation difference | 8.8 | 0.4 | (2.5) | 4.6 | |||||
| Excess of net fair value of identified assets, liabilities | |||||||||
| and contingent liabilities acquired over cost of | |||||||||
| business combination | - | (2.9) | - | (8.9) | |||||
| 60.3 | 81.3 | 104.0 | 148.2 | ||||||
| Operating profit before working capital changes | 541.4 | 339.3 | 1,006.6 | 642.1 | |||||
| Changes in working capital: | |||||||||
| Stocks* | (96.4) | (12.1) | (103.0) | 33.4 | |||||
| Financing debtors* | (153.4) | (3.0) | (183.5) | 114.5 | |||||
| Debtors * | (69.1) | (149.6) | (296.0) | (213.5) | |||||
| Creditors ** | 178.7 | 159.9 | 401.0 | 217.7 | |||||
| Pensions | (2.3) | 2.3 | (2.3) | 4.4 | |||||
| Financial derivatives | (5.6) | (0.2) | (2.6) | (1.7) | |||||
| (148.1) | (2.7) | (186.4) | 154.8 | ||||||
| Cash flows from operating activities | 393.3 | 336.6 | 820.2 | 796.9 | |||||
* Increase in stocks and debtors due to higher sales and financing activities
** Increase in creditors due to higher purchases, longer credit period and dividends payable
11. Interested person transactions
| Name of interested person | Aggregate value of all interested person transactions (excluding transactions less than S$100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920) | Aggregate value of all interested person transactions conducted under shareholders' mandate pursuant to Rule 920 (excluding transactions less than S$100,000) | ||
| US$m | US$m | |||
| Three months ended 30 June 2008 | ||||
| Jardine Matheson Limited - management consultancy services | - | 0.6 | ||
| Jardine OneSolution (2001) Pte Ltd | ||||
| - information technology services | - | 0.1 | ||
| - | 0.7 | |||
| Six months ended 30 June 2008 | ||||
| Jardine Matheson Limited - management consultancy services | - | 1.0 | ||
| Jardine OneSolution (2001) Pte Ltd | ||||
| - information technology services | - | 0.6 | ||
| - | 1.6 |
12. Closure of books
NOTICE IS HEREBY GIVEN that the Transfer Books and the Register of Members will be closed from 5.00 pm on Monday, 18 August 2008 to Tuesday, 19 August, 2008 for the purpose of determining shareholders' entitlement to the interim dividend.
Duly completed transfers received by Jardine Cycle & Carriage Limited's Share Registrar, M&C Services Private Limited at 138 Robinson Road #17-00, The Corporate Office, Singapore 068906 up to 5.00 p.m. on Monday, 18 August 2008 ("Books Closure Date") will be registered before entitlements to the interim dividend are determined. Shareholders whose securities accounts with The Central Depository (Pte) Limited ("CDP") are credited with shares as at the Books Closure Date will be entitled to the interim dividend. The interim dividend will be paid on or about Thursday, 25 September 2008. A scrip dividend alternative will not be offered as the scrip dividend scheme has been discontinued. A separate announcement will be issued on the discontinuation of the scheme. Shareholders will however, continue to have the option to receive the dividend in Singapore dollars. In the absence of any election, the dividend will be paid in US dollars. Details on this elective will be furnished to shareholders in due course.
13. Others
The results do not include any pre-acquisition profits and have not been affected by any item, transaction or event of a material or unusual nature other than the non-trading items shown in Note 4 of this report.
No significant transaction or event has occurred between 1 July 2008 and the date of this report, except that:
A. on 15 July 2008, the Company announced that it had subscribed for shares representing a 12% interest in Truong Hai Auto Corporation ("THACO"), a leading Vietnamese automotive company, at a cost of approximately US$41 million and on 25 July 2008, the Company announced that it had increased its interest to 20% for a further US$36 million, making THACO an associated company. THACO's principal activities include the manufacture, assembly, distribution, retail, repair and maintenance of commercial and passenger vehicles in Vietnam. It carries the full range of Kia commercial and passenger vehicles, as well as certain light and heavy commercial vehicles under Foton, King Long, Hyundai and its own THACO brands;
B. on 18 July 2008, the Group's subsidiary, PT United Tractors Tbk ("UT") announced a rights issue of 1:6 at an offer price of Rp7,500 per share to raise approximately US$390 million to repay borrowings to fund working capital and capital expenditure , including investments in the mining sector.. UT's immediate holding company, PT Astra International Tbk is underwriting the rights issue which is subject to approvals from UT's shareholders and regulatory authorities;
C. on 18 July 2008, the Group's subsidiary, Cycle & Carriage Bintang Berhad ("CCB") announced that it had sold its wholly owned subsidiaries, Cycle & Carriage Motors Sdn Bhd, Cycle & Carriage Parts and Accessories Sdn Bhd, and Asia Automobile Industries Sdn Bhd engaged in the parts and truck businesses for about US$5,800. As part of the sale, the inter-company balance of approximately US$3 million owing by the companies was repaid to CCB; and
D. on 30 July 2008, CCB announced a special dividend of approximately US$31 million (RM 100.6 million or RM 1.35 per share less tax) to return surplus cash to its shareholders following the completion of its business restructuring.
- end -
For further information, please contact:
Jardine Cycle & Carriage Limited
Ho Yeng Tat Tel: 65 64708108
The full text of the Financial Statements and Dividend Announcement for the six months ended 30 June 2008 can be accessed through the internet at 'www.jcclgroup.com'.
Corporate Profile
Jardine Cycle & Carriage ("JC&C") has a 50.1% interest in Astra International, a leading listed Indonesian conglomerate, and other motor interests in Southeast Asia. Together with its subsidiaries and associates, JC&C employs some 120,000 people across Indonesia, Malaysia, Singapore and Vietnam. JC&C is a Singapore-listed company and a member of the Jardine Matheson group.
Astra is the largest independent automotive group in Southeast Asia, with additional interests in financial services, agribusiness, heavy equipment, mining & energy, information technology and infrastructure. JC&C has directly-held subsidiaries operating in Singapore and Malaysia under the Cycle & Carriage banner, and associates, Tunas Ridean in Indonesia and Truong Hai Auto Corporation in Vietnam. The JC&C Group represents some of the world's leading motoring marques including Honda, Mercedes-Benz and Toyota.