SINGAPORE (Nov 14): Tai Sin reported earnings of $3.2 million for the first quarter ended Sept, down 34.7% from the $4.9 million of revenue it posted a year ago on lower revenue in certain segments, lower export sales, reduced operating income and higher operating expenses.
Revenue grew 14.1% to $78.3 million compared to $68.6 million a year ago, mainly due to the group’s Cable & Wire (C&W) segment which contributed increased revenue due to higher delivery to commercial & residential and Infrastructure sectors in Singapore and Vietnam.
Group revenue was further boosted by higher revenue contributions from Electrical Material Distribution (EMD) segment on higher sales to the industrial building and electronic clusters, as the segment began to pick up more orders from various projects.
In its filing on Tuesday, Tai Sin says the net increase in revenue was negated by lower revenue by Non-Destructive Testing and Heat Treatment revenue from the Test & Inspection (T&I) segment, as well as lower export sales to Myanmar from the C&W segment.
Other operating income dropped to $0.3 million from $1.35 million previously, on the absence of the gain on disposal of property and a fair value gain on derivative financial instruments registered in the previous year.
Meanwhile, other operating expenses increased to $0.7 million from $0.1 million in 1Q16/17 as a result of a weaker USD against SGD, which caused the group to suffer fair value loss on derivative financial instruments and foreign exchange (forex) loss during the period.
Shares in Tai Sin closed 1 cent lower at 41 cents on Tuesday.
