SINGAPORE (Nov 13): Property, engineering and manufacturing group United Engineers saw its earnings tumble 92% to $10.6 million in the 3Q ended September, from $134.7 million a year ago.
This was mainly attributable to the absence of $179.2 million in profit a year ago from discontinued operations relating to Multi-Fineline Electronix as well as UE’s environmental engineering businesses.
Revenue climbed 41% in 3Q17 to $143.0 million, from $101.7 million a year ago.
This was mainly due to revenue recognition from The Manhattan in Malaysia following project completion during the quarter, and higher revenue from sales of property units in Singapore.
Other income fell 70% to $3.3 million, mainly due to the absence of $5.0 million fidelity insurance compensation and $5.0 million write back in the provision for development charge in relation to the divestment of the group’s automotive business in 3Q16.
Finance costs decreased 53% to $4.1 million in 3Q17, mainly due to lower borrowings.
In 3Q17, the group recorded share of loss from equity-accounted associates and joint ventures of $0.8 million, compared to share of profit of $0.7 million a year ago. This was mainly due to lower contribution from a joint venture in Singapore arising from revaluation deficit from its investment property.
As at end September, cash and cash equivalents stood at $359.3 million.
The group says the Singapore property market seems to have stabilised with improved overall sentiments and strengthening global economic conditions, despite persistent regional geopolitical uncertainties.
In China, the property cooling measures have brought about a relative slowdown in activity but the property market may continue to see sustainable growth in the longer term, it adds.
Shares of United Engineers closed flat at $2.62 on Monday.
