E&O ... Sep10

PERFORMANCE OF PROPERTY SECTOR DOUBLES E&O ORIENTAL 1QE JUN 2010 NET PROFIT YOY DESPITE LOWER REVENUE

EASTERN & ORIENTAL's 1QE Jun 2010 Net Profit surged 103% to RM10.2m from the RM5.2m Net Profit same quarter a year ago. Revenue for 1QE Jun 2010, however fell to RM46.3m, 37% lower than the RM73.9m Revenue same quarter a year ago, while EPS climbed to 0.96 sen from 0.71 sen.

Of the Revenue, 64.5% was contributed by its Property Division, and 34.1% by its Hospitality Division.

NO DIVIDEND DECLARED
No Dividend was proposed for the quarter.

OUTLOOK
In Nov this year, the Company will launch its 'Straits Quay project', the first seafront retail marina in Penang, a 12-acre retail centre and commercial enclave around the Commpany's Seri Tanjung Pinang seafront development. This centre will even boast a Royal Selangor Visitor Centre by the pewter brand Royal Selangor.
The Company is confident of a good performance for the remainder of the year.

CASH & BANK BALANCES DROP, BORROWINGS SLIGHTLY DOWN
The Company's Cash & Bank Balances as at Jun 30, 2010 dropped to RM481.1m from its Apr 1, 2010 balances of RM548.1m.

Long Term Borrowings as at Jun 30, 2010 fell slightly to RM420.7m, from RM449.1m on Apr 1, 2010 while Payables dropped to RM98.5m from RM111.4m on Apr 1, 2010.