PMB’s second quarter profits driven by manufacturing, trading

PETALING JAYA: PMB Technology Bhd’s net profit for the second quarter ended June 30, 2016 rose 49.72% to RM2.42 million from RM1.62 million a year ago due to the higher profit from the manufacturing and trading segment.
In a filing with Bursa Malaysia yesterday, it said that the profit from the manufacturing and trading segment improved by 55% to RM1.9 million, mainly attributable to lower foreign exchange loss recorded during the quarter.
However, the construction and fabrication segment saw a 7% drop in profit to RM2.4 million from RM2.6 million a year ago.
Revenue for the quarter fell 15.65% to RM94.55 million from RM112.10 million a year ago due to lower revenue contribution from the construction and fabrication segment.
“Revenue from construction and fabrication segment was lower at RM46.8 million, representing a decrease of 28% from RM64.9 million. It was mainly due to slower progress of certain ongoing projects during the current quarter under review,” it said.
For the six months ended June 30, 2016, net profit rose 43.20% to RM4.81 million from RM3.36 million a year ago due to improvement in the manufacturing and trading segment as well as lower finance cost.
Revenue for the period fell 23.10% to RM168.50 million from RM219.13 million a year ago. The manufacturing and trading segment’s revenue fell 7% to RM91.1 million from RM98.1 million a year ago while the construction and fabrication segment’s revenue fell 36% to RM77.4 million from RM121 million a year ago.
The company declared a second interim single-tier dividend of 2% per share for the financial year ending Dec 31, 2016, which will be paid to shareholders on Sept 20, 2016. The entitlement date is Sept 6, 2016.
PMB Technology expects 2016 to remain challenging in view of the uncertainty in the global economy and foreign currency exchange volatility.
“On the domestic front, the overall economy outlook is not expected to be positive in light of the subdued consumer sentiment, weaker ringgit and tighter lending requirements. However, the government’s initiatives in promoting the affordable housing projects would provide the impetus for the continued growth of the construction sector,” it said.