SINGAPORE (Nov 7): Building materials provider Engro Corporation saw its earnings rise 48.7% to $2.2 million for the 3Q ended September, from $1.5 million a year ago.
Revenue grew 6.8% to $38.2 million in 3Q17, from $35.7 million a year ago.
This was mainly due to improved performance from its integral cement and ready-mix concrete as well as specialty polymer business segments.
Investment income grew fourfold to $463,000 in 3Q17, from $99,000 a year ago.
Share of profit of associates and joint ventures increased by 26.9% to $2.3 million in 3Q17, from $1.8 million a year ago.
As at end September, cash and cash equivalents stood at $28.0 million.
Looking ahead, Engro says construction demand is expected to remain flat until mid 2018, when demand from new infrastructure projects picks up.
Coupled with potential recovery of the private residential sector, local construction demand is expected to improve from 2018 onwards.
In China, the group says the government’s policy to raise the standard of cement specification should be advantageous to its green cement business. It adds that its China joint ventures are expected to continue to contribute positively to the overall performance of the group.
Shares of Engro closed 5.5 cents, or 5.9%, higher at 98 cents on Tuesday.
