Conglomerate Sime Darby posted a 21 percent drop in first-quarter earnings today, attributing the decline to lower contributions from its plantation, property and industrial divisions.

Sime Darby, the world's largest listed plantation firm by acreage, said its net profit for the three months to Sept 30 fell to RM684.6 million from RM867 million a year ago.

Revenue for the quarter slid to RM7.74 billion from RM8.71 billion.

"Going forward, Sime Darby is well positioned to take advantage of any potential recovery in the global business and commodity price cycles," chief executive officer Ahmad Zubir Murshid said in a statement.

"We will continue to invest for the future as we explore growth opportunities worldwide, with particular emphasis on expanding our operations in China," he said.

MAS back in red

Meanwhile, Malaysia Airlines said it sunk back into the red in the third quarter, blaming losses on its fuel-hedging positions.

In the three months to September, the airline posted a net loss of RM299.6 million compared with a net profit of RM38.1 million a year earlier.

That included fuel hedging losses of RM202 million for the quarter.

"The outlook for the fourth quarter 2009 continues to be challenging," the national carrier said.

"There is an early sign of improvement in passenger and cargo traffic, partly stimulated by intensive marketing campaigns but yields remain under pressure."

MAS has had a turbulent year, with a second-quarter profit of RM876 million due to fuel price hedging gains, but losses of RM695 million in the first quarter due to weaker demand and overcapacity.

It said its operating loss for the third quarter narrowed to RM73 million from a loss of RM421 million in the second quarter, helped by an improved load factor.

- AFP