SP Corporation, the industrial and engineering services group, says it posted a 13% y-o-y drop in revenue to $106.3 million for the full year ending Dec 12 2009 (FY2009) as all units reported lower revenue. Despite lower revenue and higher allowance for doubtful receivables, profit for the year was 42% higher at $2.18 million compared to FY2008.

Jobs credit grant by the government, cost-saving measures undertaken by the group coupled with lower legal costs also contributed to the stronger earnings.

Export sales from the Tyre and Auto Products unit for the first two quarters of 2009 were significantly affected by the slowdown in the economy. The situation has since improved with export sales gaining momentum. The unit also managed to maintain the domestic sales in 2009 despite the difficult economic conditions. Nonetheless, 2009 revenue of $39.3 million was 14% lower than 2008. The impact of lower revenue to earnings was cushioned by savings from cost containment measures.

The Commodities Trading unit recorded lower revenue of $53.2 million in 2009 as compared to $60.2 million in 2008 due to decline in the trading volume in metals and coal coupled with lower commodity prices in 2009 as compared to 2008. This was partly offset by rubber trades in 2009. The impact of lower gross profits was partially cushioned by the absence of allowances for stock obsolescence in 2009. As a result, the unit achieved higher earnings in 2009.

The Geotechnical and Soil Investigation unit registered lower revenue in the current year mainly due to the slowdown in the construction industry from the 2008 peak and delay in commencement of certain secured term contracts. Project margins were eroded as competition among industry players built up. Despite lower revenue, the unit’s profit improved in 2009 due to the lower allowances for doubtful trade receivables, lower bad debts write-off, higher barge leasing income and gain on disposal of plant and equipment.