SINGAPORE (Sept 21): Fu Yu Corporation says its revenue decline over the past three years will see a reversal by early FY17, after bottoming out in FY16.
The precision injection moulds and plastic parts provider explained that its gross margins have risen from 7.1% in FY11 to 16.7% in 1HFY16. In addition, it posted a positive growth in core earnings in FY14 and FY15, even as group revenue continued to slide for the past three consecutive years.
The results improvement arose from the group’s change in sales mix toward higher-margin products. Fu Yu’s management says it sees potential for better profitability from improved productivity and value-added initiatives; higher utilisation rates and right sizing of the company; and lower depreciation costs.
