SINGAPORE (May 12): Lum Chang Holdings posted a 40% drop in earnings to $4.2 million in the third quarter ended March, from $6.9 million a year ago.
Revenue grew 27% to $98.2 million in 3Q17, from $77.1 million in the corresponding quarter last year.
This was mainly due to revenue of $68.2 million recognised for two construction projects during the quarter. This was partially offset by lower revenues from substantially completed construction projects.
Cost of sales increased by 42% to $90.5 million, due to the absence of cost savings in the corresponding quarter last year for construction projects that had been substantially completed.
As a result, gross profit fell 41% to $7.7 million, compared to $13.2 million a year ago.
Cash and cash equivalents stood at $116.3 million as at March 31, 2017.
The total outstanding value of construction projects in progress for the group stood at $579.7 million as at end-March.
Looking ahead, Lum Chang says it will continue to focus on improving productivity while maintaining competiveness in the tendering of projects amid a slowdown in private sector construction activities.
Shares of Lum Chang closed flat at 35 cents on Friday.
