Lum Chang’s 1Q earnings fall 88% on higher cost of sales

SINGAPORE (Nov 10): Construction company Lum Chang saw 1Q earnings fall 88% to $995,000 from $8.5 million a year ago.

Revenue rose 13% to $102.3 million mainly due to the revenue recognition of two construction projects, which reported revenues amounting to $72 million. The increase in work performed for a construction project during the quarter also resulted in higher revenue of $9.7 million being recognised.

Cost of sales rose 22% to $93.3 million. Gross profit margin fell to 8.8% from 15.4% due to higher construction cost and lower property sales.

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