KUALA LUMPUR: KNM Group Bhd's net profits for the first quarter (1Q) ended March 31, 2010 fell by 59% to RM40.33 million from RM98.45 million a year earlier as revenue declined nearly 30% to RM373.3 million on the back of lower utilisation of capacity.

Meanwhile, profit before tax fell to RM249,000 in 1QFY10 from RM124.9 million a year ago. It recorded basic earnings per share of 1.02 sen from 2.51 a year ago.

Compared to the preceding quarter, revenue is lower by 10.38% compared to 4QFY09's revenue of RM416.52 million. However, its profit before tax and minority interest at RM249,000 is better than the 4Q loss before taxation and minority interest of RM80.9 million.

In a filing to Bursa Malaysia, KNM said the difference in the profitability was due to one off foreseeable losses provided in the previous quarter.

KNM's board maintained that it is confident that the group will “continue to be profitable” for FY2010.

At its close on Tuesday, May 25, the stock fell two sen to 48 sen and was the second most actively traded counter on the local bourse.