It has some RM500 million worth of contracts that will keep it busy for the next 12 months.
"We expect to return to the black in the current year ending June 30 2010, with a revenue of some RM350 million. These profits will come from our existing and new contracts," chairman Md Azar Ismail told Business Times after the group's shareholders meeting in Subang, Selangor, yesterday.
He said the group expects to win another contract within the next few months, which would boost its earnings. He declined to elaborate.
Bina Goodyear posted a net loss of RM24.24 million on revenue of RM333.8 million for the fiscal year ended June 30 2009.
Md Azar said it is bidding for a few building jobs in Putrajaya. He added that the group is positive on the outlook for 2010 due to tender invitations from the government and new property launches by private developers.
"We are focused on building construction works in the Klang Valley. But, if there's an opportunity to do projects in Johor's Iskandar region, we will consider, provided that the contract has substantial value," he said.
Bina Goodyear, via its 75.5 per cent unit TC Electronics Sdn Bhd, also makes automotive and home loud speakers. Md Azar said the business is improving.
TC Electronics is one of the key OEM car speaker suppliers for Proton and Perodua. It also supplies its products to international speaker manufacturers such as the JVC group and Alpine Group.
Meanwhile, Bina Goodyear senior general manager Lawrence Lau said the group is looking to re-activate its property development business. It had moved away from the division to focus on construction due to poor market sentiments.
Bina Goodyear recently sold its only parcel of land, measuring 8.6 acres, in Bandar Sri Damansara for RM27 million, to fund working capital and reduce debt to RM68 million.
"We are sourcing for land in the Klang Valley to build medium-cost buildings and medium- to high-end land properties in the near future," he said.
By Business Times (by Sharen Kaur)
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