SINGAPORE (Nov 8): Broadway Industrial Group has swung back into the black in 3Q17 on higher revenue and lower expenses from cost-cutting initiatives.
The precision components and form plastics producer reported earnings of $0.4 million for 3Q17, reversing from its $1.6 million loss a year ago
Revenue for the quarter grew 14% to $105.2 million from $92.2 million in 3Q16, largely due to an increase in revenue from the remaining Components business after the divestment of its Foam Plastics Solutions and Foam Control Devices businesses, which was completed in Dec 2016.
Distribution expenses fell 16.9% to $0.9 million from $1.1 million a year ago due to lower carriage cost resulting from sites consolidation.
At the same time, administrative and sales & marketing expenses fell 32.1% to $3.4 million from $5 million in the previous year on the back of lower salary costs due to reduced headcount over the quarter.
As a result of the higher revenue for the quarter together with the group’s ongoing cost-cutting initiatives such as rightsizing and process streamlining, gross profit margin for the quarter was 7.2% compared to –1.2% a year ago.
Net asset value (NAV) per share, however, was comparatively lower at 21.32 cents as at end-Sept from 30.82 cents in end-Dec, 2016, due to the payment of dividends to shareholders in 1Q17.
As at end Sept, cash and cash equivalents stood at $13.6 million compared to $27.4 million a year ago.
In its outlook, Broadway Industrial says it expects shipment volumes to remain above 100 million units in the subsequent quarter. The company adds that in spite of a “moderately favourable” 3Q, its management intends to remain vigilant and continuously improve its operational efficiencies to overcome future challenges.
Shares in Broadway Industrial closed 1 cent higher at 13 cents on Wednesday.
