KUALA LUMPUR: PPB GROUP BHD []'s net profit for the third quarter ended Sept 30, 2010 fell by 51.6% to RM287.99 million from RM595.07 million a year ago mainly due to lower profit contribution from its associate Wilmar International Ltd.

It said on Monday, Nov 22 that revenue rose 12.4% to RM574.53 million from RM511.18 million a year earlier. Earnings per share were 24.29 sen compared with 50.2 sen a year ago.

For the nine months ended Sept 30, PPB's net profit was RM1.73 billion on the back of revenue RM1.66 billion.

PBB said higher revenue was achieved by most divisions except for the environmental engineering, waste management and utilities divisions which recorded lower revenue.

Group profit before tax for continuing operations of RM946 million fell 17% compared with the corresponding period last year.

The flour and feed milling division contributed higher profits due to increase in sales volume and better margins, whilst film exhibition and distribution also registered higher profits arising mainly from increased admissions, it said.

"However, profit contribution for the period from our associate Wilmar International Ltd was reduced by RM344 million largely due to weaker performance in its oilseeds and grains segment," it said.

On its prospects for the current financial year, PPB said the fluctuations in commodity prices and currency exchange rates were expected to be the major factors that would impact the Group's operating results for the remaining quarter of 2010.

"For the year, the performance from all the operating divisions are expected to be satisfactory. However, with the gain from the sale of the sugar-related assets, profits for 2010 will surpass that of last year," it said.