UMS Holdings has reported lower earnings for its 1QFY2024, no thanks to softer demand within the semiconductor space.
For the three months ended March, UMS reported earnings of $9.8 million, down 44% y-o-y. Revenue in the same period was done by a third to $54 million, largely from a 37% drop in its semiconductor segment.
However, the dip moderated on a sequential basis, down 24% over the preceding 4QFY2023.
On the other hand, its aerospace segment was up 22% y-o-y, but down 32% q-o-q, as certain shipments were made ahead of schedule.
In a sign of its confidence in its balance sheet, UMS plans to pay a higher interim dividend of 1.2 cents for the quarter, up from 1 cent paid for the year-earlier period
Andy Luong, chairman and CEO, maintains that the 1QFY2024 results are consistent with the company's guidance.
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The company is actively driving revenue by winning over new customers and capturing new growth opportunities.
UMS's recently completed 300,000 sq ft factory in Penang built at a cost of RM250 million, has commenced volume production in March and sees an uptick in order flow in the coming months.
"While our semiconductor sales slowed down in the first quarter of the year, the pace of decline has moderated as the outlook continues to brighten," says Luong.
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"We have taken the right initiatives to beef up our production capabilities and strengthened our capital base, hence we will be in an excellent position to capture new growth opportunities when the global semiconductor demand rebounds," he adds.
UMS shares closed May 10 at $1.32, up 1.54% for the day, but down 0.75% year to date.
