SINGAPORE (Feb 14): Lum Chang Holdings, the property and construction group, reported a 55% drop in earnings to $5.5 million for the 2Q ended Dec, from $12 million the year before.
Revenue fell 3% to $97 million due mainly to lower revenues of $43.1 million from two of its Malaysian properties and lower revenues from completed construction projects amounting to $44.1 million. The lower revenue was partially offset by revenue recognition of $84.5 million for two construction projects.
Gross profit was down 32% to $13.9 million due mainly to the quarter reporting a “higher mix of construction revenue, which generally contributes to a lower margin compared to property sales”.
Lum Chang shares closed 1 cent lower at 35 cents on Tuesday.
