SINGAPORE (May 8): Lee Metal Group posted earnings of $2.2 million for the first quarter ended March, a 12.8% increase from $1.9 million a year ago.
Revenue in 1Q grew 6.3% to $81.4 million, from $76.5 million in the corresponding period last year.
Following the winding down of Lee Metal’s Steel Merchandising business, the higher turnover was attributable solely to its Fabrication & Manufacturing business, which increased by 9.3% to $81.4 million.
The increase in revenue was on the back of higher steel prices, but partially offset by lower volume.
In line with the lower volume in its F&M business, employee benefits expense fell 11.4% to $5.1 million mainly due to lower personnel costs.
Rental and utilities costs were 18.9% lower at $1.5 million, mainly due to streamlining of the group’s warehouse operations.
Repair and maintenance costs decreased by 15.0% to $722,000, while financial expense fell 33.9% to $364,000 on lower financing quantum during the quarter.
Cash and cash equivalents stood at $81.7 million as at March 31, 2017.
Lee Metal has declared an interim cash dividend of 0.20 cent per share for the first quarter, payable on June 23, 2017.
With the construction sector expected to slowdown, the group says it will continue to streamline its work processes to reduce costs in order to stay competitive.
Shares of Lee Metal Group closed flat at 31 cents on Monday.
