WBL Corporation, the international conglomerate whose key business drivers are technology, car distribution, property and engineering & distribution, says it posted net attributable profits (PATMI) of $18.5 million for the quarter ended 30 September 2009 (4Q FY09). This is up 5% year-on-year from last year’s PATMI of $17.6 million. Including non-recurring items, net attributable profits climbed from $3.1 million in 4Q FY08 to $18.8 million for 4Q FY09.

On the back of tough operating environment due to the global economic downturn, operational profits came in at $56.3 million, compared to $57.9 million in the prior year. Including non-recurring losses of $ 13.7 million, compared to $8.9 million non-recurring gains for FY08, net attributable profits were $42.6 million, as compared to $66.8 million for FY08.

WBL Corporation says three of the group’s four divisions saw an increase in net profits in 4Q FY09. PATMI for the property division had the highest increase, jumping by $4.3 million year-on-year to $4.8 million, while automotive and engineering & distribution enjoyed growth of 17% and 13% to $3.5 million and $6.2 million respectively. At the technology division, however, net profit dipped by 4% yoy to $12.5 million.

Chief Executive Officer Tan Choon Seng says: “We started efforts early in 2005 to streamline the Group’s operations in order to remain competitive in today’s markets. Capital management has also been diligently enforced. Our efforts have since paid off, as demonstrated by our strengthened fundamentals.”

Wearnes reported net operating cashflow of $176.4 million and nearly a 50% y-o-y increase in cash balances to $444.4 million. As a result, the Group is now in a net cash position. Furthermore, improved inventory management and receivables collection reduced inventory by 20% to $162.8 million and receivables by 17% to $355.5 million.

For the full year, the technology division continued to be the major driver, posting a 17% y-o-y jump in net operating profits, as it contributed $36.1 million or 64% of group PATMI. The rise stemmed from higher revenue at majority-owned Multi-Fineline Electronix, Inc. (MFLEX), whose sales were boosted by strong demand for smartphones and other consumer electronic devices.

The automotive division recorded an equally strong rise of 17% in PATMI to $13.4 million. Sales slipped after the Chevrolet franchise was relinquished in June 2009, but this drop was offset by lower operating costs.

Looking ahead, Tan says: “This year is the second in a row where all our business divisions have been profitable. With the economy recovering, we are optimistic that all four business divisions will continue to drive profits in the year ahead.”