Breaking News-RTRS-UPDATE 1-INTERVIEW-Malaysia IOI says worst is over for planters

PUTRAJAYA, Malaysia July 2 (Reuters) - IOI Corp , Malaysia's No 2 planter, said on Thursday that the worst was over for the plantation sector as palm oil prices have recovered from last year's slump although M&A activity would be muted.
Earnings of Malaysian palm oil producers plunged in the first quarter as crude palm oil prices more than halved from a year ago.
IOI, valued at $8.37 billion, saw net profit nearly wiped out during January-March due to weak crude palm oil prices and large foreign translation losses on its U.S. dollar borrowings.
Sime Darby , Malaysia's top planter, reported a 85 percent drop in net profit while third-ranked Kuala Lumpur Kepong saw net profit down 52 percent in the same period. "It's quite obvious it will be better. The industry including ourselves expects to see much better fourth quarter (April-June) operating results," IOI Executive Director Lee Yeow Chor told Reuters at the company's headquarters in the administrative capital of Putrajaya.