SINGAPORE (May 10): Frencken Group saw its earnings tumble 58.5% to $6.8 million for the 1Q ended March, from $16.3 million a year ago.
This was mainly due to the absence of a one-off gain of $10.2 million a year ago on the disposal of subsidiaries.
1Q18 revenue grew 3.2% to $138.8 million, from $134.4 million a year ago.
A 19.3% increase in sales at the Mechatronics Division to $106.9 million in 1Q18 was partially offset by a 29.1% drop in sales at the IMS Division, mainly due to the absence of sales from Precico Electronics (PESB) which was divested a year ago.
Excluding the revenue contribution from PESB in 1Q17, group revenue would have increased 15.4% year-on-year in 1Q18.
As at end March, cash and cash equivalents stood at $52.5 million.
Looking ahead, the group says its semiconductor segment is expected to grow year-on-year in 2Q18 in tandem with continuing demand for semiconductor equipment.
Revenue from its analytical and medical segments as well as automotive segment are also expected to improve in 2Q18 compared to a year ago, while revenue from its industrial automation segment is expected to be stable.
Shares of Frencken closed 2 cents lower, or down 3.6%, at 54 cents on Thursday.
