Hap Seng Consolidated Bhd pre-tax profit for the fourth quarter ended Dec 31, 2010, increased to RM171.51 million from RM31.43 million in the same period of 2009.

Revenue rose to RM810.88 million from RM679.6 million previously.

For the financial year ended Dec 31, 2010, Hap Seng recorded a higher pre-tax profit of RM504.45 million compared to RM172.76 million in the previous year, on revenues of RM2.789 billion and RM2.464 billion respectively.

Hap Seng in a statement today said the strong results reflected a major step-up in group profitability combined with double-digit revenue growth of 13 per cent over 2009.

'The results reflect the underlying strength of our core businesses, our strategies to maximise the synergies between business segments, and our disciplined financial management,' said Hap Seng group managing director Lee Ming Foo.

He said the company's core businesses benefited from a robust operating environment as well as improving returns from investments made over the course of recent years in developing the strategic position and asset base of the business unit.

The company's plantation's operating profit improved by 64 per cent to register RM231 million, attributable to higher crude palm oil and palm kernel selling price, higher sales volume and a significant reduction in production cost due to lower fertilizers prices.

Property holding and development's operating profit increased by six per cent to record RM118 million due to higher sales from developments and increased rental contributions from investment properties.

As for its automotive business, operating profit increased by 187 per cent to RM13 million, attributed by the expansion of its Mercedes-Benz dealership into Vietnam as well as higher sales volume in the Malaysian market.

Fertilizers trading achieved an operating profit of RM31 million compared with last year's loss of RM132 million due to higher sales volume, improved margins from careful cost containment, and lower warehousing expenses in both Malaysia and Indonesia.

Its credit financing business saw operating profit up 11 per cent to RM59 million, gaining from lower financing cost and improved non-performing loans positions.

The quarry and building materials side recorded a 15 per cent increase in operating profit to RM22 million.--BERNAMA