SINGAPORE (Feb 27): Engro Corporation posts a 29.2% decline in earnings to $1.8 million for the 4Q ended December on the back of lower revenue, from earnings of $2.6 million a year ago.
This brings full-year earnings to $3.6 million for FY17, down 37.0% from $5.8 million a year ago.
Revenue fell 31.0% to $29.8 million in 4Q17, from $43.1 million a year ago.
This was attributable to lower sales volumes for the Integral Cement and Ready-Mix Concrete segments.
The decline was mainly due to environmental control measures in China which adversely affected its steel production in Hebei province and disrupted supply of one of its imported materials.
As at end December, cash and cash equivalents stood at $23.9 million.
Engro Corp has proposed a first and final dividend of 2.50 cents per share for FY17, unchanged from a year ago.
Looking forward, the group says it is “cautiously optimistic” that construction demand will increase from late 2018 onwards, on the back of higher estimates of total value of construction contracts to be awarded for the year.
In China, Engro Corp says the government’s policy to raise the standard of cement specifications should continue to benefit its Green Cement business.
Shares of Engro Corp closed 4 cents higher, or up 4.4%, at 95 cents on Tuesday.
