Sime Darby shares posted their biggest one-day decline since 2008, after reporting a 43% fall fiscal third quarter profit.
Shares of the Malaysian conglomerate plunged as much as 14% intraday before closing 12.6% lower at 1.87 ringgit.
Sime Darby posted a net profit of 193 million ringgit, equivalent to $45.7 million, for the quarter ended March 31, compared with profit of 340 million ringgit a year earlier, according to a filing Tuesday afternoon. Weaker performance across its core divisions weighed on net profit.
Quarterly revenue fell 13% from a year earlier to 16.31 billion ringgit.
Global economic uncertainty, heightened by U.S. tariffs and market volatility, is expected to create challenging conditions for Sime Darby's industrial and automobile segments, the company said. While the automobile business faces weak consumer demand and rising competition, particularly from Chinese players, medium-to-long-term demand for its mining products from Australia will likely remain resilient, it added.
Nonetheless, Sime Darby expects core financial performance for fiscal 2025 to weaken from a year earlier.