SINGAPORE (Nov 14): Poh Tiong Choon Logistics announced earnings of $2.7 million for the third quarter ended Sept, down 3% from $2.8 million a year ago due to higher total expenses.
Revenue for the quarter grew 5% to $36.7 million compared to $34.8 million, due to higher volumes handled by both the group’s Warehousing and Transport Operations segments.
Total expenses, however, increased by 6% to $33.4 million from $32.5 million in 3Q16.
This was mainly due to an increase in depreciation of property, plant and equipment, employee compensation, sub-contractors charges, cost of inventories sold and upkeep of commercial vehicles and barges.
As a result, total profit after tax fell by 4% to $3 million in 3Q17 compared to profits of $3.1 million a year ago.
In its outlook, Poh Tiong Choon says it continues to obtain new business opportunities in spite of the challenging business environment. The performance of the group will continue to be affected by diesel prices, tightening of the labour market, pressure on wage costs and interest rate fluctuations, it adds.
On Sept 20, it was announced that the group had received a $1.30 per share takeover offer from its chairman, Poh Choon Ann, for all of its issued and paid-up ordinary shares.
See: Poh Tiong Choon gets $1.30 per share offer from chairman
The group emphasises that chairman Poh intends to privatise the company, and does not intend to preserve its listing status upon completion of the deal.
Shares in Poh Tiong Choon closed flat at $1.31 on Tuesday.
