SINGAPORE (Aug 14): Elec & Eltek International Company posts a five-fold increase in earnings to US$7.6 million ($10.3 million) in the 2Q ended June, from US$1.5 million a year ago.
Gross profit increased 18.4% to US$17.4 million in 2QCY17, on the back of a 3 percentage point improvement in gross profit margin to 14.6%.
This was due to an increase in external sales, higher selling price of laminates due to an undersupply in the market, as well as further improvements in its printed circuit board (PCB) plant’s operating efficiency.
Administrative expenses fell 42.4% to US$5.1 million in 2QCY17, from US$8.9 million a year ago.
Revenue fell 6.4% in 2QCY17 to US$118.9 million, from US$127.0 million a year ago.
As at end June, cash and cash equivalents stood at US$17.6 million.
Looking ahead, the group says the operating environment remains challenging in the second half of 2017.
Elec & Eltek adds that it is upgrading its production facilities to optimize product performance, so as to enhance the group’s competitiveness and satisfy customers’ demands.
Shares of Elec & Eltek closed flat at US$1.75 on Monday.
