Jardine Strategic unfazed by tanking economic environment, posts $1.59b profit

But take note of its weaknesses.

According to Jardine Strategic's preliminary results review, the Group had a strong 2012 even amid a challenging economic environment. And that while earnings growth stumbled, it continued to post stronger revenues and resilient undelying profits.

Here's comple overiew and performance assesment from Jardine Strategic:

Overview. There were good trading performances in a number of the Group companies in 2012 despite the moderating effects on the region of global economic uncertainty. Earnings growth was, however, held back principally by difficult market conditions for Jardine Matheson’s motors operation in mainland China, a one-off charge in Dairy Farm and currency weakness reducing the reported contribution from Astra.

Performance. The Group’s revenue for 2012, including 100% of revenue from Jardine Matheson, associates and joint ventures, was US$60.5 billion, compared with US$57.3 billion in 2011. Jardine Strategic achieved an underlying profit before tax for the year of US$4,597 million, little changed from the prior year. Underlying profit attributable to shareholders was also in line with 2011 at US$1,587 million, while underlying earnings per share were 1% higher at US$2.58.

The profit attributable to shareholders for the year was US$1,839 million, with the main nontrading item being a modest increase in the value of Hongkong Land’s investment property portfolio, and compares with US$3,943 million in 2011 which benefited from a more significant increase in valuations. Shareholders’ funds were 9% higher at US$21.3 billion.

The Group’s consistent and growing profit generation, cash flows and retained earnings of recent years have enabled it to combine high levels of capital expenditure with low levels of debt. Net debt excluding financial services companies at the year end was US$3.1 billion, or 7% of consolidated total equity. 

In light of the Group’s strong liquidity, the Board is recommending a final dividend of US¢17.00 per share, which represents an overall increase of 7% for the full year.