Ta Ann Holdings earnings fell 73.7% in the second quarter ended June 30, 2012 from a year ago due to lower sales by oil palm and timber segments, but the company expects the second half to be better. Source: The Star Online
Both oil palm and timber segments registered lower sales volume with the exception of export log section.
Regarding its plywood operations, the mills reduced production in the quarter by 30% in view of the weak plywood market. Sales volume of FFB, crude palm oil (CPO) and plywood products fell by 11%, 24% and 35% respectively though export log sales volume was 8% higher.
According to the company selling prices were all significantly lower with FFB, CPO, plywood products and export logs recording 8%, 7%, 15% and 23% lower average selling prices respectively.
Ta Ann said the timber market trend would hinge on the plywood market. It expected demand for export logs from the main buyer country, India, to be sustained.
