SINGAPORE (May 8): Venture Corporation posted earnings of $60.3 million for the 1Q2020 ended March, some 33.6% lower than $90.9 million a year ago.
The decrease is in tandem with the border control and social distancing measures owing to the Covid-19 pandemic, which caused disruptions to the corporation’s global supply chain in China, Malaysia, and Singapore. Earnings took a hit mainly in the second half of 1Q2020 due to factory lockdowns in China, Spain, the US, and Malaysia.
Revenue for the quarter fell 27.5% to $673 million, from last year’s $928.8 million, while Venture Corp’s net cash position grew 19.5% to $852.5 million from last year’s $713.4 million.
On a fully diluted basis, earnings per share (EPS) in 1Q20 fell to 20.8 cents, compared to 31.5 cents in 1Q19.
Due to the nature of the Venture Group’s businesses as “essential services”, or “essential products”, including products such as ventilators for Covid-19-infected individuals, the group managed to resume operations by end April.
“The strategic direction that Venture has taken over the past several years, has positioned the Group well to take advantage of any rebound or surge in the ecosystems of interests. Venture has managed this current fluid period in its stride and is more than future ready. We will continue to pay attention to achieving a robust and healthy balance sheet to sustain us for the long term,” said the statement on Friday.
Venture Corp shares closed 2 cents lower, or 0.1% down, at $15.74.
