SINGAPORE (Nov 7): Mun Siong Engineering reversed out of the red in the 3Q ended September with earnings of $825,000, compared to a loss of $411,000 recorded a year ago.
The improved performance comes despite revenue falling 39.6% to $16.3 million during the quarter with a lower volume of project work completed.
However, the group saw its gross profit margin improve significantly to 8.7%, from 4.0% a year ago. As a result, cost of sales fell at a faster clip than the decrease in revenue, dropping 48.1% to $14.0 million.
Consequently, Mun Siong registered a gross profit of $2.3 million in 3Q17, compared to a gross profit of $66,000 a year ago.
As at end September, cash and cash equivalents stood at $30.7 million.
Looking ahead, the group says its core competencies in plants and facilities maintenance are expected to continue to be its main revenue generator.
It adds that it expects to continue to experience intense competition for work and pressure on profit margins in the near term.
Shares of Mun Siong closed 0.1 cent lower at 6.6 cents on Tuesday.
