SINGAPORE (Nov 8): Sunningdale Tech announced that 3Q17 earnings decreased 24.2% to $7.7 million from $10.2 million in 3Q16 on forex losses and higher expenses.
Revenue saw a 9.1% increase to $188.1 million compared to $172.5 million a year ago.
The increase in revenue was fuelled by growth across all segments. The group’s cyclical mould fabrication segment increased 35.0% y-o-y to $36.0 million; automotive segment increased 2.5% y-o-y to $63.2 million; consumer/IT segment rose 5.6% y-o-y to $76.9 million; and healthcare segment grew 6.2% y-o-y to $12.1 million.
Concurrently, cost of sales was up by 8.9% to $161.2 million from $148.0 million last year.
Hence, gross profit for the third quarter ended September came in at nearly $27 million, 10.3% higher than $24.4 million the same period last year.
During the quarter, the group recorded foreign exchange losses of $3.1 million compared to a foreign exchange gain of $2.3 million for 3Q16, primarily attributed to the volatility of the USD.
Meanwhile, other expenses increased fivefold to $3.9 million from $777,000 a year ago.
Khoo Boo Hor, CEO and executive director of Sunningdale Tech says, “As we continue to win projects from new and existing customers, we are progressively adding capacity at our latest manufacturing facility in Chuzhou, China. In addition, the construction of our 20th manufacturing location in Penang is ongoing and remains on track for completion in the first quarter of 2018.”
“Heading into the final quarter of the year, we remain vigilant in a constantly evolving business environment. Nevertheless, our relentless pursuit of operational excellence has ensured that our long-term vision of building a sustainable and profitable business model remains on track,” adds Khoo.
Shares in Sunningdale closed 7 cents lower at $2.25 on Wednesday.
