KUALA LUMPUR: LCL Corporation Bhd posted net loss of RM25.39 million in the third quarter ended Sept 30, 2009, a stark contrast from the net profit of RM9.74 million a year ago due to continuous costs overrun for the Dubai projects.

The interior out-fit company said on Monday, Nov 30 that revenue fell 61% to RM57.78 million from RM147.9 million a year ago. Loss per share was 17.74 sen compared with earnings per share of 6.81 sen.

LCL also reported its trade receivables amounted to RM221 million while amounts due for contract works from customers totalled RM154 million.
"The (3Q) losses were mainly attributed to the unexpected delay in the project resulting in cost overrun arising from the prolongation of projects," it said.

LCL also said since it was not tendering new projects in Dubai, it had also incurred additional cost in right-sizing its Dubai operations which were workers' compensation, logistics and pre-mature termination of accommodation arrangement.

"The delayed payment from clients also worsen the situation whereby the group need to shoulder additional operational cost and financing cost associated
with project financing facilities procured for the projects," it said.

Compared to the nine-months ended Sept 30, 2008, group revenue fell by 30.2% to RM243.7 million from RM349.1 million previously recorded.

"This is mainly due to the lower progress billing for most of the on-going Dubai projects which are near to completion by 4Q09," it said.

It recorded net loss of RM58.63 million compared with net profit of RM26.73 million.