SINGAPORE (Nov 2): AEM Holdings’ earnings are up more than fourfold to $9.4 million from $2.2 million a year ago for the third quarter ended Sept on higher revenue and lower costs.
See: AEM issues positive update to 9M and FY profit guidance
The group’s latest set of financial results brings its earnings for 9M17 to $21.8 million compared to $3.8 million in the previous year and is in line with its 9M and FY profit guidance issued in mid-Oct.
Revenue for the quarter more than doubled to $58.3 million from $21.3 million in the previous year on higher contributions from the equipment systems (ESS) business due to growth in equipment, pans and kits sales, as well as improved revenue from the precision components (PCS) business on higher demand from customers.
Sales from ESS more than doubled to $56.7 million in 3Q17 while sales from the Precision Components (PCS) business rose 4.9% to $1.43 million.
Raw materials and consumables cost more than doubled to $35.9 million in 3Q17. But the rate of increase was lower than the rate of increase in revenue mainly due to favourable change in revenue and margin, favourable change in price from SGD to USD billing, and increase in engineering service revenue for new development projects.
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AEM remains positive on its business outlook as it continues to progress through the multi-year commercial rollout of its next-generation handler platforms, and expects to achieve FY17 revenue and operating profit before tax of at least $215 million and $32 million, respectively.
A second interim of 3 cents per share has been declared, in addition to the first interim dividend of 2.5 cents to reward AEM’s shareholders.
“The global semiconductor outlook for the 2017 and 2018 remains positive as we progress with our multi-year rollout of the next-generation platform,” says the group’s chairman, Loke Wai San.
“We will continue to explore additional acquisitions, vertically upstream or downstream along our supply chain or horizontally in related sectors to further enhance our capabilities and mitigate our risk exposure to semiconductor volatility.”
Shares in AEM closed flat at $3.14 on Thursday.
