Diversified conglomerate, Sunway Holdings Bhd, posted RM59.2 million pre-tax profit in the second quarter ended June 30, 2010, up by 17 per cent from RM50.4 million in the first quarter.

Revenue also rose to RM509.2 million compared with RM501.7 million in the preceding quarter, the company said in a statement on Bursa Malaysia.

The quarter-on-quarter improvement in operating income is the result of the recognition of profit from the group''s second property development project in Singapore and stronger margin from the trading division.

No comparisons were made to the previous corresponding quarter and period due to the change in the financial year-end in the previous financial year.

The second quarter results included the RM5.7 million non-operating income, with the gain arising from the adoption of Financial Reporting Standards (FRS) 139, the gain on disposal of its sole hotel assets of RM13.4 million and provisions made for impairment losses on some of its non-core assests amounting to RM9.5 million.

However, Sunway Holdings said without incorporating the non-operating income and excluding the gains arising from the adoption of FRS 139, the quarter's RM53.5 million adjusted pre-tax profit was higher by 18 per cent than the previous quarter's RM45.4 million adjusted pre-tax profit.

During the six months under review, Sunway Holdings posted RM109.6 million pre-tax profit on the back of RM1,010.9 million, which included RM10.7 million non-operating income.

The operating performance for the period was mainly contributed by the construction, property development and trading and manufacturing divisions.

Moving forward, the company said it expected sustainable results in the current financil year, with the main contribution coming from construction, property development and trading divisions.

It said the existing RM2.7 billion outstanding order book, together with the sustained activity in the local construction schne, will set the momentum for a good year for the group's construction division.

'With RM467 million unbilled sales from existing property projects and income from upcoming property launches, both locally and overseas, the property development division will continue to contribute to the group's earnings for the current year,' it added. -- Bernama