Bandar Raya Developments Bhd announced that despite Mieco's turnaround in the second quarter of 2009, an overall full year 2009 loss is anticipated mainly due to the fixed costs of its plant in Lipis which has been temporarily closed as a result of the economic downturn.

Bandar Raya Developments Bhd reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company net profit attributable to equity holders of MYR 40,606,000 or 7.9 sen diluted share on revenue of MYR 231,188,000 compared to profit attributable to equity holders of MYR 15,000,000 or 2.6 sen per diluted share on revenue of MYR 208,10,000 for the same period a year ago. Profit from operations was MYR 55,994,000 and profit before taxation was MYR 50,507,000 compared to profit from operations was MYR 23,964,000 and profit before taxation was MYR 18,214,000 for the same period a year ago. For the six months, the company net profit attributable to equity holders of MYR 57,590,000 or 11.7 sen diluted share on revenue of MYR 435,423,000 compared to profit attributable to equity holders of MYR 46,155,000 or 7.8 sen per diluted share on revenue of MYR 466,388,000 for the same period a year ago. Profit from operations was MYR 83,485,000 and profit before taxation was MYR 71,266,000 compared to profit from operations was MYR 61,515,000 and profit before taxation was MYR 50,416,000 for the same period a year ago. Cash flows from operations for the period was MYR 84,803,000 compared to net cash flow used in operating activities of MYR 17,579,000 for the same period a year ago. Purchase of property, plant and equipment was MYR 72,435,000 compared to MYR 43,872,000 for the same period a year ago. This revenue is principally due to the completion of Phase 1 of One Menerung and progress recognition of construction of Troika and CapSquare Office Tower 2 in Kuala Lumpur. The better performance of the property division mitigated the 55% revenue drop in the manufacturing division under Mieco Chipboard Berhad.

Bandar Raya Developments Bhd (BRDB) stated that the company may sell Mieco Chipboard Bhd if there is a good enough offer. Mieco’s chairman, Datuk Mohamed Moiz JM Ali Moiz said: "Mieco is an attractive bride and is never short of dates. She has always had suitors and is frequently courted. It is just that BRDB, as a parent, is very choosy of prospective suitors for Mieco." He added: "Furniture is a necessity, be it in a residential, commercial or industrial setting. This industry has legs to see through the tough times. We remain optimistic of the long-term prospects." Mieco reported a loss of MYR 36.3 million in 2008. He stated that it was difficult for Mieco to make money this year. Four years ago, BRDB's plan to demerge its stake in Mieco to BRDB's minority shareholders under a capital repayment exercise failed. Asked if the company may again look at a possible demerger, he said: "In business anything is possible. It does not necessarily have to be a demerger. We keep our options open."