SINGAPORE (May 10): Pan-United Corporation reported a 71% fall in earnings to $0.91 million in 1Q18 from $3.13 million in 1Q17.
Revenue for the quarter was 64% higher at $214.2 million from $130.3 million a year ago, due mainly to higher trading revenue.
Raw materials, subcontract cost and other direct costs increased by 74% to $191.2 million compared to $109.8 million last year
Other expenses came in 3% higher at $10.2 million, while finance costs increased 10% to $1.04 million.
Share of results of associates rose 7% to $0.9 million.
Therefore, the group reported profit before income tax from continuing operations of $0.18 million from a loss before income tax from continuing operations of $0.63 million a year ago.
As at March 31, cash and cash equivalents stood at $35.2 million.
In its outlook, construction demand from the public and private sectors in Singapore is expected to spur activity in the coming months, with the Government increasing infrastructure spending to an estimated $20.0 billion in FY18.
Private-sector construction demand is also expected to improve by the launches of the redevelopment on the en bloc sites undertaken in the last 18 months.
Meanwhile, keen interest in foreign investment into Vietnam’s real estate sector is also expected to continue throughout the rest of 2018.
Despite the opportunities in the markets the group serves, the group remains cautious as the markets remain fragmented and intensely competitive.
Shares in Pan-United closed at 38 cents on Thursday.
