UMS Holdings has reported earnings of $68.5 million for FY2023, down 34%, no thanks to higher costs and lower revenue. Revenue in the same period was down 19% to $299.9 million, as it was weighed down by the overall down cycle of the semiconductor industry.
The company plans to pay a final dividend of 2.2 cents.
Andy Luong, the company's chairman and CEO calls the FY2023 results a "good" one following an exceptional FY2022.
"The group's performance also reflects the success of our diversification strategy - as the aerospace business continued to report robust growth, moderating the impact of the global semiconductor slowdown," he adds.
UMS's new 300,000 square feet production facility in Penang, built at a cost of RM250 million, will commence volume production in March for a new customer and the company expects an uptick in order flow in the coming months.
The global semiconductor sector could see some near-term softness due to surplus inventory issues, overall longer-term prospects look brighter, says Luong, citing feedback from customers.
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"In view of the favourable forecasts from our customers and the expected global semiconductor industry rebound as well as the sustained strong global aviation demand, we remain confident of future prospects and will continue to make investments across our key business segments to support our long-term growth plans."
UMS shares closed at $1.51 on Feb 28, unchanged for the day but up 41.12% over the past 12 months.
