KUALA LUMPUR: Plantation heavyweight IOI Corporation Bhd's earnings rose 2.8% to RM567.80mil in the third quarter ended March 31, 2013 from RM552mil a year ago but expected to better in the final quarter.

It said on Tuesday the increase was due to the better performance from manufacturing and property segments. However, it was mitigated by lower translation gain on foreign currency denominated borrowings and lower profit contributions from plantation segment.

IOI Corp's revenue fell 10.6% to RM3.20bil from RM3.58bil while earnings per share were 8.89 sen compared with 8.59 sen.

Commenting on its plantations, it said that profit fell 31% to RM208.3mil from RM303.2mil a year ago.

"The lower profit reported is due mainly to lower crude palm oil (CPO) and palm kernel (PK) prices, partially offset by higher fresh fruit bunches (FFB) production in Q3 FY2013. Average CPO price realised for Q3 FY2013 was RM2,226 a tonne as compared to RM3,143 for Q3, FY2012," it said.

As for its resource-based manufacturing, profit for Q3 FY2013 was higher at RM226.1mil versus RM89.1mil a year ago.

" The higher profit of the segment is mainly due to higher margins from all the sub-segments as well as increase in sales volume from refinery and specialty fats sub-segments," it said.

IOI Corp said the property development segment's operating profit of RM181.6mil in Q3 FY2013 was 65% higher than the RM110.1mil a year ago.

The higher profit is due to higher development revenue in this quarter and a gain of RM21.1 million arising from the revaluation of existing equity interest following the acquisition of the remaining 50% equity holding in a jointly controlled entity, Prime Joy Investment Limited

For the nine-month period, its earnings rose 22.7% to RM1.703bil from RM1.387bil in the previous corresponding period. Its revenue fell 14.5% to RM10.16bil from RM11.89bil.